In December 2014, self-styled Islamist Man Monis held 18 people inside the cafe in the central business district.
The CCTV footage shows heavily armed police entering the building's foyer at 2:14 local time on 16 December and setting off a number of flash grenades.
Monis died after he was shot multiple times, but that is not shown in the footage.
A hostage, Katrina Dawson, was also killed in the raid by a ricocheting police bullet.
How the Sydney siege unfolded
The raid was triggered when Monis shot the cafe's manager, Tori Johnson, in the back of the head after ordering him on to his hands and knees.
The footage shows the officers filing through a door into the cafe and bringing out hostage Robin Hope.
Earlier on Tuesday, the inquest saw CCTV footage of six hostages scrambling out of the cafe as a shot blasted through a nearby wall.
Sophie Callan, counsel assisting the coroner, said it was believed that Monis was trying to shoot the hostages, and not firing a warning shot as previously thought, according to the ABC.
It was one of several escapes by hostages during the siege.
The coroner's inquest into the Lindt Cafe siege is entering its concluding stages.
An inquest has watched dramatic video of police raiding Sydney's Lindt Cafe to end a 17-hour siege.