Ahead of the main procession, marchers and bands paraded around the city's historic walls.
It is one of the biggest parades held in Northern Ireland and marks the anniversary of the ending of the Siege of Derry in 1689.
Thousands of supporters from across the UK turned out to watch the 145 bands taking part.
Having completed a circuit of the walls, members of the Apprentice Boys made their way to the Diamond for a wreath laying ceremony.
A thanksgiving service, "to give thanks to God for the deliverance of the city," was then held at St. Columb's Cathedral.
The memorial ceremony is held on the second Saturday in August each year, to commemorate the ending of the 105-day siege of the city in August 1689.
Also known as William of Orange, or King Billy, the new monarch was supported by Protestants in Derry, who shut the gates of the walled city to keep out the advancing Jacobite army.

23 January 2017 Last updated at 07:17 GMT
Well, the Kanneh-Mason family are very special - they all play an instrument to a very high level.
Their house can get pretty loud with all six bothers and sisters practicing at once.
Why are all the siblings so into playing musical instruments?
Ayshah has been to meet them.

The County Down school led 0-9 to 0-4 at half-time and extended their lead to six points by the conclusion.
Rian O'Neill top-scored for the winners with 0-7, while Cian McConville contributed 0-2. Tiernan Kelly recorded three points for St Ronan's.
St Mary's Magherafelt and St Paul's Bessbrook must replay their semi-final.
The schools played out a 1-12 to 1-12 draw in the opening semi-final at the Dub on Wednesday and are set to meet next week at a venue still to be finalised.

The 32-year-old knows Coleman's side will be tough to beat having improved hugely since two defeats by Serbia in the last World Cup qualifying campaign.
The Chelsea defender, who has led Serbia to the top of Group D, says they face a difficult match ahead of them.
"This is the hardest game since we started qualification," he said.
Ivanovic scored in the 6-1 thrashing of Wales in 2014 World Cup qualifying at Novi Sad, in September 2012 - the heaviest defeat in Coleman's reign.
A year later he was part of the side which won 3-0 at the Cardiff City Stadium - the last time Wales lost a home qualifier.
Set to earn his 91st cap for his country on Saturday, Ivanovic believes the scars of the past will provide extra motivation for Wales.
"We know that and we have to be careful with that. We have to play much much better than last time to get something from the game because Wales is a completely different team from that moment," he continued.
"Those kind of games happen may be once in 100 years. It's very difficult to win against one team three times in a row even when the opponent is not that strong and you cannot say that about Wales."
Serbia go into the game topping the group as they edge the Republic of Ireland on goal difference while Wales are two points adrift in third.
The visitors will be without the suspended Manchester City defender Aleksander Kolarov, who is suspended after collecting two bookings in the group.
Wales will welcome the return of Arsenal midfielder Aaron Ramsey for the first time in this campaign after his recovery from a hamstring injury.
Ivanovic believes they will be stronger for his inclusion, but inevitably the major threat will be Real Madrid star Gareth Bale.
"I think he is the biggest name and biggest star in the Wales team. But I think Wales as a group have improved," Ivanovic said.
"The team have played a couple of years together to bring results and will, of course, be very difficult to stop Gareth Bale and the rest of the guys."
"Most important for us is we have a lot of new things - new coach, new shape of the team. We are still building. We have improved a lot from last summer and we are going in the right direction.
"But the way to Russia is so long we have to be careful and we have to play every single game like a final.  We know this is our hardest game so far."
The annual Apprentice Boys demonstration has taken place in Londonderry.
[NEXT_CONCEPT]
After school some of you might like to play musical instruments, but can you imagine coming from a home where everyone is a top musician?
[NEXT_CONCEPT]
St Colman's Newry progressed to the MacRory Cup final by beating St Ronan's Lurgan 0-14 to 0-8 in Thursday night's semi-final at the Athletic Grounds.
[NEXT_CONCEPT]
Branislav Ivanovic says Wales will want to avenge their previous two defeats against Serbia when they meet in Saturday's World Cup qualifier.