Plans for the city's first dedicated gay quarter at the bottom of The Moor, beside the existing Dempsey's Bar and Club, were welcomed by the city's LGBT+ community when they were announced earlier this year.
As well as the two bars which are already open, the area should soon include a combined gay club and sauna called Fraternity, a third as-yet-unnamed gay bar and a yet-to-be-named gay shop, according to the team behind the project.
Queer Junction said its 'soft opening' this weekend had been a 'blast' and thanked everyone who joined in the party.
The new bar said it is due to officially open next weekend.
"Thank you very much for everyone who came to our soft opening weekend. We had a blast, and both DJ Brooke and DJ Blaq Ivory commented afterwards what a great crowd you are," the bar's owners posted on Facebook today.
"We have a few things to adjust (and repair after Ivory's impromptu bar top one woman Whitney Houston tribute) but will be back with you from Wednesday as we lead into the the BIG WEEKEND!"
The bar added: "The reaction has been very positive, and the feedback we have received says people are wowed when they first enter.
"I was told last night that bringing back drag queen DJs to Sheffield is brilliant and well received."
Several customers have already left glowing reviews on Facebook, with the Doctor Who decor proving particularly popular.
The Gay Quarter, as it has been officially dubbed, is on the corner of The Moor and Hereford Street, and Queer Junction occupies the former Yorkshire Bank building.
Facebook users welcomed the plans earlier this year, saying they could lead to fewer people travelling to Leeds or Manchester instead of Sheffield for nightlife.
In June, Sheffield was named as one of the UK's most gay-friendly cities. It came 14th out of 26 British towns and cities in the Rainbow Cities Index produced by Ampersand Travel.