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The Korean rapper, who turned 35 on the last day of December, floored the audience at Times Square with his Gangman moves.
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Korean song the 'Gangnam Style' became the first ever video in the history of the Internet to be viewed more than a billion times.
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Sporting a white furry overcoat the singer danced and rocked the stage like never before.
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The Associated Press reported that Psy is set to "become a millionaire" from YouTube advertisements and iTunes downloads, which underlines a shift in how money is being made in the music industry overnight.
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The lyrics of the Gangman song talks about the perfect girlfriend who knows exactly how to be the butter in your mouth and how to get pricy!!! Lucky girl
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Psy shows off some of his best choreographed Gangman moves on stage.
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The crowd at the 'Times Square' grooved and swayed with every move of the singer.
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The original video starts out with Psy, who is seen lounging at what looks like a sandy beach, under a sun umbrella and holding a cold drink, but the camera zooms out showing him actually at a playground.
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Psy has also signed a guest book at the United Nations, in New York headquarters on October 23 of this year.
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A father to twin daughters Psy considers 'Gangnam Style' to be the greatest achievement of his life.
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Rapper MC Hammer (L), and Korean Rapper PSY perform during New Year's Eve 2013 In Times Square at Times Square on December 31, 2012 in New York City. (Photo by Mike Coppola/Getty Images)