Every year in November, the city hosts 'Homotopia', a month long festival of gay culture including theatre, film, photography, and art. Launched in 2004, and supported by the Arts Council England, the celebration has now become a highlight of Liverpool's cultural calendar. The festival is directed by Gary Everett, an esteemed member of the local gay community, who has also been involved in the running of several of Liverpool's gay nightclubs.

In contrast to a traditional 'Pride' festival, Homotopia is a forum to showcase LGBT talent in the field of arts, photography, performance etc, and is designed to bring together creative individuals irrespective of sexuality.

Shows and events take place in theatres and galleries around Liverpool, and tend to be separate from the traditional gay scene. The opening and closing ceremonies do, however, often involve some form of club night.

Homotopia has been attended by numerous high profile figures from international gay society, including Peter Tatchell, Holly Johnson, Armistead Maupin and Amy Lame. Homotopia also represents the gay community with its own float in Liverpool's annual Lord Mayor's Parade, along with other communities in the city. Many feel that the Homotopia festival as a whole makes up for the lack of a Gay Pride.