The event on Saturday featured stalls selling Christmas items, food and drink, as well as amusements, a stage with live music and singing from local schools and groups.
The church bells rang loudly to add to the Christmas spirit.
Alford and Mablethorpe Rotary Club were able to arrange for Father Christmas and Mrs Claus to visit the town in a fabulous steam engine and sleigh, which travelled through the town and streets lined with people.
When they arrived at the beautiful grotto, they greeted local families and met around 200 children.
This was followed by a switch on of Alford's Christmas lights by Lincs FM's Joseph Begley, to a packed Market Place of local residents and visitors.
Jean Shutt, a member of Alford Town Promotions, said: "It was fabulous to see so many people enjoying themselves.
"The town was buzzing and the atmosphere of our town was amazing.
"I was walking with the Santa parade, and to see all those faces, brought a tear to my eye. I am so proud of our community."
Alford Town Promotions was formed in February 2019 as many local residents felt that Christmas spirit had become lacking over previous years.
During the year, Alford Town Promotions have put on fund raising events such as an Easter Egg Hunt and Race Night, at which local people have been very supportive.
The group includes local businesses in and around Alford, shopkeepers, the Town Council, event traders and many local individuals, who have given their time freely to volunteer with us at our events.
To find out what Alford Town Promotions are doing next, follow them on Facebook at Alford Town Promotions or on Instagram at alford_town_promo