After three years in prison, former Labor minister Eddie Obeid has walked out of jail.

The former Labor powerbroker who made and broke premiers was released from Silverwater prison, walking to a waiting car parked in the visitor's area.

Wearing a black cap and carrying a box of his belongings, a trimmed down Obeid was hugged by family members before he stepped inside a waiting car shortly after 10am.

Obeid was greeted by son Moses and lawyer Michael Bowe.

With windscreen wipers obscuring vision inside the car, Obeid dodged the awaiting media pack as the car drove through the final boom gate.

Obeid, 76, was granted parole last month after serving three years behind bars for misconduct in public office for failing to reveal his family's financial interest in two Circular Quay cafes when lobbying a NSW bureaucrat over the plight of harbourside tenants.

The Right-wing faction leader was sentenced to five years jail, with a three year minimum.

During his sentence, Obeid shared cells with sex offenders and murderers with the former fisheries minister spending the last few weeks helping jailed magistrate Graeme Curran adjust to prison life at Kirkconnell jail.

Obeid will head to the family residence in Hunters Hill for a huge welcome home party. Marquees were being set up in the backyard yesterday for the homecoming.