Hundreds of people packed into The Venue - formerly the military barracks at Ebrington Square - to watch the Sons and Daughters event on Sunday night.
Girls Aloud singer Nadine said she was "so, so excited" to give her first performance in her home town for almost seven years.
"It's Derry and it's great to get the chance to perform here," she said.
"It's not somewhere that we always come back to. I am always having to beg people to let me come back."
The gig was billed as a showcase of some of Derry's best musicians, with a lineup that included Neil Hannon, Dana and The Undertones.
Snow Patrol frontman Gary Lightbody, whose mother is from the Fountain estate, also took to the stage.
Derry-Londonderry is the first UK City of Culture and it's hoped an extra £500m could be generated into the local economy as a result.
Deputy First Minister Martin McGuinness, also from Derry, said the event will put out a positive message about the city.
"It (the concert) will send a powerful message that the north-west wants to move forward peacefully using these cultural opportunities that are presented," he explained.
"The events and activities of our year as City of Culture offer us the opportunity to demonstrate to the world that this is a city of hope, of aspiration and of creativity."