More than 500 people attended the Engadine dawn service after the permitted number of tickets was increased from 250 in the lead-up to the event.
About 150 veterans were present for the ceremony at the war memorial in the town square.
There was no march this year for COVID safety reasons and the service was shorter and simpler.
The many young families who attended included Brad and Yvette Warren and their three children, Emily, 7, Georgie, 5 and Molly, 2.
When Brad and Yvette put the children to bed on Saturday night, they dressed them in the clothes they would wear to the dawn service to make it quicker to get out the door by 5am.
The couple said they do not have a family member or members to remember, but "just want to show respect and teach the kids what it's all about".
They were among many young families among hundreds at the service.
Thomas Hayes, of Engadine, brought his daughter Naomi to her first dawn service.
Mr Hayes said the ceremony was simple, well organised by the RSL sub-Branch and a very rewarding experience.
Students leaders from several schools were present and laid flower tributes and gifts.
St John Bosco College teacher Karen Perrett said they normally had a bigger group, but were prevented from doing so this year by COVID-19 restrictions.
Sutherland Shire councillor Diedree Steinwall, who is also a teacher at the college, praised the efforts of Ms Perrett in making Anzac Day a significant occasion for the entire school community.
Cr Steinwall said a service was held at the college and Ms Perrett made 1000 poppy badges, so every student could wear one.
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