The gunman took an unknown number of people hostage in a cafe at the height of Monday morning's rush hour.
The siege ended about 16 hours later when armed police stormed the building and gunfire and explosions were heard.
The gunman and a hostage were reported to have died. Several other people were injured.
Here are the facts we know:
:: A gunman went in to the Lindt cafe in Sydney at around 9.45am local time (10.45pm GMT).
:: The suspect has been named as Iranian Man Haron Monis - who is currently on bail for a number of violent offences.
:: Police were alerted when a woman reported seeing a man carrying a gun in a blue bag.
:: The man appeared to be middle-aged, with a beard, and was wearing a black and white headband. There were reports he was known to police and media outlets.
:: A flag with Arabic writing was displayed at the cafe window and several hostages were seen with their hands up against the window.
:: The writing on the flag appears to be the shahada, or profession of faith in Islam, and says: "There is no god but Allah; Mohammed is the Messenger of Allah."
:: Australian prime minister Tony Abbott said there were indications the siege could be politically motivated.
:: The scene of the drama, Martin Place, is in Sydney's financial centre and houses several prominent buildings, including the New South Wales parliament, the US consulate, the country's central bank and the Commonwealth Bank of Australia.
:: Some six hours into the siege, three men emerged from the popular cafe and ran for their lives, two from the front door and one from an emergency exit.
:: Around an hour later two women who appeared to be staff members also fled into the arms of police.
:: It is understood that they all escaped and were not released.
:: Police confirmed that negotiators have made contact with the gunman.
:: The two female hostages told Channel Ten news the gunman claims there were four bombs; two inside the Lindt cafe and two in Sydney's financial district.
:: Just after 2am local time (3pm GMT), five more hostages ran out of the building.
:: A few minutes later, armed police stormed the building and gunfire and explosions were heard. Police then declared the siege over and a number of people were injured.
:: A bomb disposal robot was seen outside the building.
:: The fate of the gunman was not known.
:: It was not clear how many hostages had been held. Reports vary from eight to 50 people.
:: However, police said the numbers are "not as high as 30".
:: Anyone who works in the area has been advised to work from home on Tuesday.
:: Australia raised its terror threat level in September.
:: Watch continuous live coverage on Sky channel 501, Virgin Media channel 602, Freeview channel 132 and Freesat channel 202.
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