Multicultural Tauranga president Premila D'Mello said the festival would help boost morale for the community post-Covid.
"Especially with Covid now a lot of our communities are going through separation and being away from their families ... It means a lot to the communities to be able to hold it this year," she said.
D'Mello said the 2021 festival would be a celebration of various identities and the ability to connect with cultures.
"When it got cancelled so many communities were so disappointed and they had worked so hard for the past couple of festivals.
"It's a highlight of many migrants' calendars. So being able to do it this year will be a huge celebration where migrant and local communities are going to be eager to be involved."
Between 3000 and 5000 people were expected to attend the festival, she said.
At least 30 cultures would be represented, including Indonesian, Indian, Czech, Polish, Chinese, Cambodian, Korean, Japanese, Pacific Islands, Māori, Greek, Solomon Islands, Latin American and Filipino.
The theme of this year's festival was Kia Kotahi te hoe, which means paddle as one.
A festival highlight would be the Parade of Nations at noon, D'Mello said.
"It's quite a lovely colourful sight to behold. It's quite a beautiful feeling."
Tauranga National MP Simon Bridges had been invited to officially open the event and a karakia will be said by Tamati Tata.
Gate Pa School, Tauranga Intermediate, Mount Maunganui College and Tauranga Girls' College had also been invited to perform, as well as StarJam.
"We are also going to have discovery tents so people can interact and experience the cultures.
"People will have the opportunity to not only learn about a different culture but do some of the activities."
There would be face painting for children and a live cooking demonstration from Maketu celebrity chefs Karena and Kasey Bird.
People would be able to use free buses from outside Durham St to the Historic Village.
Hemvati Bhaumik will be performing an Indian classical dance at the festival.
It will be her first time performing a piece she has created with a lesbian theme.
Bhaumik said the festival was important in order to be able to celebrate and bring cultures together.
"I am really proud to say I am an Indian," she said. "It's something that can connect me to the people of Tauranga."
The details
What: Tauranga Multicultural Festival
When: March 20, 10am to 5pm
Where: Historic Village
Cost: Gold coin entry