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.
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.