The MHTF was postponed last year due to the weather and had to be held in conjunction with the tree lighting.
Festival organiser Lindi McMahon said it was a massive night last year.
"The city was packed and it was such as nice vibe, so we decided to do it together again this year," she said.
"The festival started about six years ago it was just like a makers market and something for families to come to with a bit of music and its just grown each year."
IN OTHER NEWS:
The MHTF will take place in the Quadrant Mall from 5pm to 8pm featuring Alice in Wonderland characters, jumping castles, face painting, food and wine, a band and the Hobart Hurricanes playing street cricket.
Christmas in the City takes place in the Brisbane Street Mall from 6pm to 9pm. There will be late night shopping, free children's activities, an appearance from Santa, a concert, and food vendors in Charles Street.