The "Rise" singer and her beau, Orlando Bloom, sparked engagement rumors on Monday, when Perry was spotted sporting a massive sparkler on her left ring finger during a date night at The Polo Bar in New York City.
Dressed in a black-and-white patterned jumpsuit and tan pea coat with a bright pink pout and perfectly manicured nails, Perry seemed to be flaunting the jewelry as photographers snapped her and Bloom's pic.
"She walked with her left hand leading her, and bent her hand to show off the large sparkler to the cameras," an eyewitness told ET.
As you can see in the photo below, the ring is an oval cut yellow diamond surrounded by dainty baguettes.
The adorable duo, who have been dating for 10 months, were all smiles during the outing, sweetly holding hands as they made their way into the restaurant.
According to the eyewitness, Perry, 32, and Bloom, 39, arrived around 8 p.m. and "seemed proud to show off their happiness."
"Katy's mood was better than [I] had seen before," the eyewitness added. "Katy was happy and laughing, joking with Orlando and pals as they got into the car. [Katy and Orlando] seemed proud to show off their happiness."
Reps for Perry and Bloom did not reply to requests for comment.
On Sunday, the couple was spotted boarding their plane to the Big Apple from Los Angeles, where the pop star was hilariously dressed in a gingerbread cookie get-up. The sighting came just a few days after the two put breakup rumors to rest when Perry shared a series of Instagram videos of Bloom spending Thanksgiving with her family.
See more photos of Katy Perry through the years:
Katy Perry through the years
Katy Perry through the years
FLORENCE, ITALY - JUNE 18: Katy Perry poses backstage prior to the Moschino show during the 88 Pitti Uomo on June 18, 2015 in Florence, Italy. (Photo by Vittorio Zunino Celotto/Getty Images)
TANGERANG, INDONESIA - MAY 9: Katy Perry performs on the stage during her 'Prismatic' world tour concert at Indonesia Convention Extibition, Tangerang, Indonesia on May 9, 2015. This is the second concert Katy Perry in Indonesia. (Photo by Kharisma Aris/Anadolu Agency/Getty Images)
INDIO, CA - APRIL 12: Mia Moretti (2ndL) and Katy Perry (C) with guests in the VIP arena during the 2015 Coachella Valley Music and Arts Festival - Weekend 1 at The Empire Polo Club on April 12, 2015 in Indio, California. (Photo by Rachel Murray/Getty Images for Coachella)
LOS ANGELES, CA - MARCH 26: Singer Katy Perry takes a selfie with fans at the screening of EPIX's 'Katy Perry: The Prismatic World Tour' at The Theatre at Ace Hotel Downtown LA on March 26, 2015 in Los Angeles, California. (Photo by Jason Merritt/Getty Images)
US singer Katy Perry performs at the Ziggo Dome in Amsterdam, on March 09, 2015 as part of her Prismatic World Tour. AFP PHOTO/ANP/FERDY DAMMAN - netherlands out - (Photo credit should read Ferdy Damman/AFP/Getty Images)
PARIS, FRANCE - MARCH 08: (L-R) Kanye West, Kim Kardashian and Katy Perry attend the Givenchy show as part of the Paris Fashion Week Womenswear Fall/Winter 2015/2016 on March 8, 2015 in Paris, France. (Photo by Pascal Le Segretain/Getty Images)
LOS ANGELES, CA - FEBRUARY 08: Singer Katy Perry attends The 57th Annual GRAMMY Awards at the STAPLES Center on February 8, 2015 in Los Angeles, California. (Photo by Jason Merritt/Getty Images)
GLENDALE, AZ - FEBRUARY 01: Singer Katy Perry performs during the Pepsi Super Bowl XLIX Halftime Show at University of Phoenix Stadium on February 1, 2015 in Glendale, Arizona. (Photo by Tom Pennington/Getty Images)
GLENDALE, AZ - FEBRUARY 01: Recording artist Katy Perry performs onstage during the Pepsi Super Bowl XLIX Halftime Show at University of Phoenix Stadium on February 1, 2015 in Glendale, Arizona. (Photo by Christopher Polk/Getty Images)
PHOENIX, AZ - JANUARY 29: Singer Katy Perry speaks during the Pepsi Super Bowl XLIV Halftime Show Press Conference at the Phoenix Convention Center on January 29, 2015 in Phoenix, Arizona. (Photo by Mike Lawrie/Getty Images)
SYDNEY, AUSTRALIA - NOVEMBER 26: Katy Perry takes a selfie with fans at the 28th Annual ARIA Awards 2014 at the Star on November 26, 2014 in Sydney, Australia. (Photo by Ryan Pierse/Getty Images)
WASHINGTON, DC - JULY 31: (AFP OUT) Singer Katy Perry performs during a concert commemorating the Special Olympics with U.S. President Barack Obama, not pictured, in the State Dining Room of the White House on July 31, 2014 in Washington, D.C. Founded in 1968 by Eunice Kennedy Shriver, the Special Olympics movement has grown to more than 4.4 million athletes in 170 countries. (Photo by Andrew Harrer-Pool/Getty Images)
Pop star Katy Perry arrives on June 12, 2014 in Los Angeles, California, for an announcement where she is teaming up Staples to 'Make Roar Happen', celebrating and supporting teachers for a philanthropic effort during the back-to-school season. Besides donating $1 million to DonorsChoose.org, Staples will sponsor the North American leg of Katy Perrys Prismatic World Tour, which starts in Raleigh, North Carolina on June 22. AFP PHOTO/Frederic J. BROWN (Photo credit should read FREDERIC J. BROWN/AFP/Getty Images)
LAKE BUENA VISTA, FL - JULY 04: In this handout photo provided by Disney Parks, singer Katy Perry poses with Minnie Mouse and Mickey Mouse at Disney's Hollywood Studios at Walt Disney World Resort on July 4, 2014 in Lake Buena Vista, Florida. Katy Perry, who sang the hit song 'Firework,' visited Walt Disney World Resort on U.S. Independence Day during a break in her global 'Prismatic' concert tour. (Photo by Chloe Rice/Disney Parks via Getty Images)
LONDON, ENGLAND - FEBRUARY 18: Katy Perry attends the Elle Style Awards 2014 at one Embankment on February 18, 2014 in London, England. (Photo by Anthony Harvey/Getty Images)
LOS ANGELES, CA - JANUARY 27: Recording artist Katy Perry performs onstage during 'The Night That Changed America: A GRAMMY Salute To The Beatles' at the Los Angeles Convention Center on January 27, 2014 in Los Angeles, California. (Photo by Kevin Winter/Getty Images for NARAS)
NEW YORK - FEBRUARY 04: Singer Katy Perry attends the Betsey Johnson 2008 fashion show during Mercedes-Benz Fashion Week Fall 2008 at The Tent at Bryant Park on February 4, 2008 in New York City. (Photo by Stephen Lovekin/Getty Images for IMG)
CULVER CITY, CA - MAY 30: Singer Katy Perry performs onstage during the taping of Spike TV's 2nd Annual 'Guys Choice' Awards held at Sony Studios on May 30, 2008 in Culver City, California. The show airs on June 22, 2008 at 10PM ET/PT on Spike TV. (Photo by Alberto E. Rodriguez/Getty Images)
LOS ANGELES, CA - JUNE 17: Musician Katy Perry attends the Katy Perry record release party for 'One of the Boys' at Capitol Records on June 17, 2008 in Los Angeles, California. (Photo by Jesse Grant/Getty Images for EMI Music)
NEW YORK - SEPTEMBER 05: Katy Perry arrives in Bryant Park during the Mercedes-Benz Fashion Week Spring 2008 on September 5, 2007 in New York City. (Photo by Katy Winn/Getty Images for IMG)
LOS ANGELES - MAY 5: Singer Katy Perry arrives at the H.D. Buttercup Grand Opening Celebrity Treasure Hunt at the H.D. Buttercup at the Helms Bakery Building May 5, 2005 in Los Angeles, California. (Photo by Phil McCarten/Getty Images)
WEST HOLLYWOOD, CA - FEBRUARY 27: Singer Katy Perry arrives at The Abbey / Esquire Magazine 'The Envelope Please' Oscar Viewing Party on February 27, 2005 at The Abbey in West Hollywood, California. (Photo by Amanda Edwards/Getty Images)
BEVERLY HILLS, CA - FEBRUARY 23: Singer Katy Perry during the Jimmy Choo annual Oscar Collection Preview and Tea at the Peninsula Hotel on February 23, 2004 in Beverly Hills, California. (Photo by Amanda Edwards/Getty Images)
SAO PAULO, BRAZIL - SEPTEMBER 24: Singer Katy Perry performs live at Arena Allianz Parque on September 25, 2015 in Sao Paulo, Brazil. (Photo by Daniel Vorley/Getty Images)
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Back in September, Perry and Bloom enjoyed an equally fun-filled day at Shanghai's Disneyland Park. The brunette beauty later took to Instagram to share a photo of the two wearing matching Mickey and Minnie socks.