IT was once the final resting place for some of the country's first settlers - but now their remains are being exhumed to make way for a plant and equipment room.

Yesterday more than 3000 curious people turned up at the Sydney Town Hall to watch as workers meticulously uncovered 53 graves of adults and children.

The First Fleet graveyard is the city's first cemetery dates back to 1792 and was the resting place for a convicts, free settlers and soldiers.

Now part of the cemetery is being turned into "an essential plant and equipment room" according to the City of Sydney Council which says the renovations are part of a $60 million upgrade.

First Fleet graveyard exhumed

"It was enormous. It shows major public interest and descendants of a lot of these people are still around," archaeologist Mary Casey said.

Dr Casey said there were no more open days planned as the project is being prepared for the next stage.