A 'Pink Ladies' jacket from the film went for $50,000 and a poster signed by Olivia, her co-star John Travolta, director Randal Kleiser and producer and songwriter John Farrar, sold for $64,000.
The leather jacket and pants (even though they were sold with a broken zip!), and all the movie costumers, contributed towards the USD$2.4 raised, with many items selling for way over their estimated price.
The British-born, Australian-raised 71-year-old singer and actress revealed earlier this year that she was battling breast cancer for a third time since first being diagnosed in 1992.
Olivia told the London Telegraph that she was "doing great" despite the stage 4 breast cancer having metastasised to her sacrum.
After her first bout with cancer, she helped set up the Olivia Newton-John Cancer & Wellness Centre in Melbourne, which aims to support the mind as well as the body.
All of the proceeds from the Grease jacket and pants will benefit the centre, as well as a portion of all the other items sold on Saturday.
"I am not sad at all to let go of these things," Olivia said ahead of the auction.