Canada's navy has pulled out of the International Fleet Review on Sydney Harbour.
Canadian vessels were due to participate in the maritime spectacular but a RAN spokeswoman confirmed on Friday that Canada's contingent had withdrawn.
She declined to comment on whether this was because of the collision of two of its warships, HMCS Algonquin and HMCS Protecteur, en route to Hawaii in August.
The Canadian Defence Department said the two warships were conducting towing exercises, which require close-quarters manoeuvring, when the incident occurred.
"HMCS Algonquin will no longer deploy to Asia Pacific region as planned," the department said in a statement on August 31.
Eighteen visiting warships and 19 Royal Australian Navy vessels cruised into Sydney Harbour on Friday as part in the historic nautical event, which runs until October 11.
The International Fleet Review also features more than 60 aircraft, 10 military bands, 8000 sailors and a huge fireworks display.
Prince Harry is also set to drop by to give the royal salute during his whirlwind royal tour of Australia.
About 1.4 million people are expected to attend the eight-day nautical extravaganza.
Fleet fireworks like no other
As far as Sydney fireworks supremo Fortunato Foti is concerned, battleships and pyrotechnics are the perfect combination.
That's why organisers of Saturday's light and fireworks spectacular say the show to celebrate the International Fleet Review will be unlike anything ever seen before on Sydney Harbour.
Mr Foti, who is also responsible for staging Sydney's New Year's Eve fireworks says while those festivities have the Harbour Bridge as a centrepiece, Saturday's will play out across 17 harbour locations.
Seven lit-up warships will be transformed into firework launching pads in an Australian first, project director Heath Campanaro says.
GALLERY: One of the first naval ships to enter Sydney Harbour. Photo: AAP
"People will never have seen anything like this," Mr Campanaro said.
"The show is very different to anything done on Sydney Harbour before.
"It's going to be one of the most amazing things we've seen."
More than seven tonnes of fireworks are ready to go, including special plane-shaped crackers.
A soundtrack inspired by 100 years of naval history has been made specifically for the event.
The show is result of 12 months of planning, and has been timed down to the minute, Mr Campanaro said.
Rehearsals over the past few nights have gone "perfectly", but with 17 visiting navies and international media watching, Mr Campanaro admitted his team was feeling the pressure.
"But we are very organised and we're on top of it," he said.
With about a million spectators expected, the show had been designed to give everyone a good view.
Projections will be shown on both sides of the Opera House, as well as lighting from 28 spots along the foreshore.
Mr Fortunato said it couldn't get much better than battleships and big bangs.
"It's every kids dream, isn't it," he said.
The spectacular starts at 7.30pm (AEST), and the best public vantage points will be at Dawes Point, Bradfield Park, Mrs Macquarie's Chair and along Circular Quay.
The Navy is in town
Over 20 warships from 17 nations sailed into Sydney Harbour this morning, marking 100 years since the Royal Australian Navy fleet first entered the Harbour.
Large crowds gathered as a procession of warships cruised into a sparkling Sydney Harbour for the International Fleet Review.
PLAN Qingdao from China, Singapore's RSS Endeavour and the Royal Malaysian Navy's KD Jebat entered this morning under grey but clearing skies.
There will also be ships from the United States, the United Kingdom, France and India.
The HMAS Sydney was among the fleet that sailed into Sydney on this day a century ago.
Its namesake escorted the ships from Jervis Bay as they made their way up the coast last night.
Ship gazers posed with naval officers and snapped pictures as the ships sailed under the bridge, while a navy band in full regalia began setting up on the Opera House forecourt, ready to supply the soundtrack for the day's activities.
Craig Boyd, 45, came from Canberra with his son Daniel, 13, to see the spectacle.
As a helicopter circled overhead, Mr Boyd said it was an ideal school holiday outing and a chance to teach his young son some impromptu history lessons.
"My father was in the navy for some time, so just the opportunity - you don't get to see things like this too often," he said.
By the foreshore, Stacy and Georgina Andreadis, 63 and 61, had set up their deck chairs in prime vantage points.
"We'd been here for the 75th anniversary (of the RAN), and now we're here for the 100," Mr Andreadis, of Wetherill Park, said.
He said he was particularly keen to see the international vessels sailing Down Under and both were considering coming back on Saturday for the harbour fireworks spectacular.
By mid-morning, Ruth Pigott, 60, of Camden, had also ticked a few things off her day's itinerary.
"We've ridden the ferries and listened to the bands," she told AAP.
"Now we're going to go out on the harbour to look at the boats."
But she was less enthusiastic about one of the star attractions of the review, Prince Harry, who will be inspecting the fleet on Saturday.
"No, no. Not interested in him," she said.
Tall Ships land in Sydney Harbour
The ships are set to greet Sydney under sunnier skies than yesterday's arrival of 17 Tall Ships.
Despite the weather, the Harbour was buzzing with activity as the ships arrived as part of the once-in-a-century spectacle, which runs until October 11.
The maritime spectacular will also feature more than 60 aircraft, 10 military bands, 8000 sailors and a huge fireworks display on Saturday.
Prince Harry is also scheduled to make an appearance.
The festivities began on Thursday morning, with musicians from the Royal New Zealand Navy Band and RAN Sydney Commodores Wind Trio climbing aboard Manly ferries to serenade commuters.
The tall ships from Australia, New Zealand, the UK, Canada and the Netherlands will sail into the harbour at 11am (AEST) on Thursday.
Ships arriving in Sydney Harbour for the fleet review. Photo: 7NewsWould-be spectators have been urged to use public transport and additional services are running.
Mrs Macquaries Road in the Royal Botanic Gardens will remain closed until 6pm on Thursday, while part of Hickson Road in the Rocks will close from 11am until 2pm.
Extra Route 324 buses will be running between Circular Quay and Watsons Bay, along with extra Route 380 buses between Watsons Bay and Bondi Junction and Route 244 buses between Spit Junction and Chowder Bay at Mosman.
Ferries may fill up and drivers have been warned special event clearways will be in place in the city and along the northern and southern side of the harbour until 8pm Thursday.
The review commemorates the arrival of the Royal Australian Navy fleet in Sydney for the first time 100 years ago, in October 1913.
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