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Echoing her Grease character Sandy Olsson's trademark all-black leather outfit, 65-year-old Olivia sported a pair of leather trousers and a black blazer as she arrived in Sin City.
In honour of the residency, which is called Summer Nights in Las Vegas, Olivia rode on the backseat of the very same Ford Mercury Cadillac used in the 1978 film's drag-racing scene.
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The Australian star was joined by dancers dressed as Grease's all-girl group the Pink Ladies and the T-Bird gang.
Upon her arrival at the hotel, a delighted Olivia was presented with a key to the Las Vegas strip by Clark County Commissioner Tom Collins.
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During her residency Olivia will be performing hits from Grease, including Hopelessly Devoted to You and You're the One That I Want, as well as numbers from her solo career.
Olivia's 51-year-career has seen her release 24 albums and 71 singles. Her song Physical reached the number one spot in America, Canada, Australia and New Zealand and went platinum in the US.
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Despite her solo success, Olivia and her Grease co-star John Travolta reunited to make a Christmas album in December 2012.
Hailed as one of the most iconic on-screen couples, John and Olivia ditched the perms and leather for their video I Think You Might Like It.
Olivia donated her share of the album's profit to charity. Diagnosed with breast cancer in 1992, the actress gave her proceeds to the eponymous Cancer and Wellness foundation.
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