TV's Dr. Oz will be grand marshal of the parade, with hosts including Erik Estrada, Laura McKenzie, Dean Cain and Montel Williams.
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Street closures will make driving difficult in Hollywood. The parade will travel along a three-mile route starting at Hollywood Boulevard and Orange Drive.
RELATED: Hollywood Christmas parade route and street closures
The festivities start with a concert at 5 p.m., followed by the parade at 6 p.m.
With the road closures and big crowds expected, the use of public transportation is advised.
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Visitors say the parade is getting them in the mood for the holiday season.
"It's really nice - all the lights and the Christmas spirt," said Raquel Sepulveda, of Glendora. "It's beautiful."