The Gay Gala at the Cirkus concert venue in Stockholm is an annual event sponsored by QX magazine, which is published for the LGBT community in Sweden and Scandinavia.
At the gala, Crown Princess Victoria was given a minute-long standing ovation when she caught the audience by surprise and appeared on stage just before midnight. She was there to award the prize for Gay of the Year (Årets homo) to comedian and author Jonas Gardell.
"We'll dry each other's tears with open hearts," the princess announced.
"The prize goes to the author, the dramatists, and the inspiration - Jonas Gardell."
The comedian accepted the honour, but not without a quick reminder as to who was supposed to be the star of the moment.
"Victoria, you may be the princess but tonight I'm the queen," he said.
Gardell has been more in the spotlight than usual ever since the publication of his best-selling novel Never Dry Tears Without Gloves (Torka aldrig tårar utan handskar) that chronicles the Aids epidemic in Sweden in the 1980s.
The novel has since been made into a three-part TV series, and both the novel and the series picked up awards on Monday night.
Simon J. Berger, one of the lead actors in the series, picked up the award for Best TV star and Adam Pålsson and Adam Lundgren, from the same series, won best TV couple.
Other winners on the night included the Bee Bar as the best gay hangout, and Loreen's Euphoria as Song of the Year.
The gala will be broadcast on TV4 on Saturday night.