About half a million people basked in the sunshine on the second and biggest day of the 41st Notting Hill Carnival.
Floats, steel bands and dancers in costumes paraded through the streets. Met chief Sir Ian Blair said the west London event had a "good atmosphere".
Attendance was slightly lower than expected - organisers said people might have stayed away because of the London bombings in July.
Three female pedestrians were treated in hospital after being hit by a float.
One woman is believed to have been treated for severe pelvic bruising and leg injuries, the other two for minor leg injuries, Scotland Yard said.
'Show of force'
Police estimated that attendance on Monday was 500,000, and on Sunday 200,000.
One of the carnival organisers, Lewis Benn, told BBC News: "The unfortunate incidents of 7 July has had an impact on people's lives.
"But I would say that by looking at the show of force and people that have come out from all ethnic backgrounds, it just goes to show that Londoners will not be beaten by these people".
Sir Ian said: "The community has been very much behind the Metropolitan Police after the events of 7 and 21 July and I think this is a very good example of that.
"I am really sending out the same message to the terrorists as I have been all along which is that London will endure and prevail and it will continue to endure and prevail."
Some 10,000 police officers and 500 transport police were deployed over the two days with 80 CCTV cameras in operation over the carnival area.
Police said 166 people had been arrested during the carnival - 61 on Sunday and 105 on Monday.
Two people were injured following a disturbance in Colville Square. One suffered three puncture wounds, another received a head injury.
Police cordoned off the area, which was being treated as a crime scene.
The arrests were mainly for offences of assault, drugs, criminal damage, drunkenness, possession of offensive weapons and public order.
Elsewhere, the Caribbean Showcase, a free family event organised by the mayor of London, took place in Hyde Park and attracted 15,000 people.
London Mayor Ken Livingstone had wanted to extend the main carnival procession to Hyde Park, but organisers said they would not change the route without consulting the many community-based groups that take part.
So instead, Hyde Park's events ran separately.
On Sunday, about 200,000 enjoyed Children's Day, featuring performances by costumed youngsters.