The royal couple was received on Sunday by crowds that wrapped around St Thomas' Anglican Church in northern Sydney.
As the King and Queen made their way to the front entrance, children waving Australian flags cheered and shook hands with the royals.
The royal couple were bathed in sunlight that poured through the door and stained-glass windows. (Dean Lewins/AAP PHOTOS)
The Queen, wearing a pale green Anna Valentine dress and straw hat, was given flowers by the church minister's wife, Ellie Mantle, as she entered the church.
Once inside, the royal couple were bathed in sunlight that poured through the door and stained-glass windows.
Dozens of phones pointed in their direction while excited whispers echoed through the room.
Despite the guests of honour, Sunday's service was largely restricted to the local congregation.
Only a few dignitaries were allowed to attend, including Governor-General Sam Mostyn and the Governor of NSW Margaret Beazley.
Protesters also gathered outside the church, holding banners that read "Empire Built on Genocide" and "Decolonise" as well as Aboriginal and Lebanese flags.
Peaceful protesters gathered outside the Sydney church service. (Dean Lewins/AAP PHOTOS)
Bishop Christopher Edwards delivered a prayer, asking for the protection of the King and Queen, along with a hope the upcoming Commonwealth Heads of Government Meeting in Samoa would be prosperous.
He also asked for world peace and an end to wars during a service which featured hymns, prayers and several readings from the Old and New Testaments.
The church's minister Michael Mantle thanked the King and Queen for their attendance and said it was an honour to host them.
Sunday's service was filled with history.
Upon arrival, King Charles passed by the corner stone of the church that was unveiled in 1881 by his great-grandfather King George V.
King Charles and Queen Camilla also signed two bibles in black pen including one that belonged to Australia's first minister, Richard Johnson, who was also the Chaplin on the First Fleet.
The church's minister said it was an honour to host the King and Queen. (Dean Lewins/AAP PHOTOS)
As they left the church, the royals were greeted by hundreds of cheering people, all hoping to catch a glimpse or snap a photo.
Among them were Helen Hetrelezis and her brothers, who arrived at the church at 7.45am - almost three hours before the church service.
Their efforts paid off and Ms Hetrelezis was granted a few moments with Queen Camilla after church.
"We spoke about her visit. I asked the Queen about her stay, she said she was enjoying Sydney very much," Ms Hetrelezis said.
In an unplanned moment, the King and Queen went to greet the crowds on the other side of the church, with police scrambling to ensure they were protected.
Archbishop Kanishka Raffel said it was a "delight" to have the royal couple attend the local service.
"It has been a great pleasure and privilege," he said.
Royalists pounced on the opportunity to meet the King and Queen. (Dean Lewins/AAP PHOTOS)
The royals arrived in Sydney on Friday night and will travel to Canberra on Monday to attend events at the Australian War Memorial and Parliament House.
They will return to the harbour city on Tuesday where they will greet the public at the Sydney Opera House.
The King will then travel to Samoa, where he will open the annual Commonwealth Heads of Government Meeting.
With pool reporter
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