The teen, who is not being identified because of his age, was charged with murder, hate crime, and criminal possession of a weapon.
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The suspect reportedly turned himself into police on Friday afternoon.
On Saturday afternoon, New York City Mayor Eric Adams joined the NYPD to discuss the suspect's arrest and how the community is dealing with Sibley's death.
"So what are we doing as adults that creates this energy of hate? And that energy that's created, it's not coming from a community, such as the Muslim community that is aware of the hate that they see every day. It's not coming from the LGBTQ+ community of the hate they experience. So it's coming from other entities that we need to fight against, and the only way we can win is if we are united in our fight and that's why we're standing here today on the announcement of this apprehension," Mayor Adams said.
A vigil was held for Sibley on Saturday night in New York City. There, his two sisters spoke out about their love for their brother and their anguish over how he died.
"We're all trying to deal with it, but we know that the hate that lived in the man who murdered my brother also lives in other people. That's why we're making a big deal about this," said one sister.
Sibley had many ties to the Philadelphia area. He was a member of the Philadelphia Dance Company, also known as Philadanco!
He started there when he was only 14 years old.
Joan Myers Brown, the founder of Philadanco!, told Action News earlier this week she has seen gay Black men in dance face hardship and hate.
"(He was) coming from North Philly, where the guys teased you for being a dancer, he persevered," said Myers Brown. "It's not easy for men who want to be dancers, especially our Black men."
Sibley moved to New York City to pursue his dream of dance. Myers Brown says he was studying dance at the famed Ailey School while dancing at various venues as he waited for his big break in the business.
One of Sibley's best friends, Otis Peña, moved from Philadelphia to New York City with him. Peña was there the night of the fatal stabbing.
"To remember O'Shae is just the light of accepting everyone, love everyone for who you are no matter where you come from. O'Shae had a big heart," said Peña.
Tributes have been pouring in for Sibley, who was an openly gay professional dancer.
Spike Lee posted a tribute on Instagram for Sibley to "Rest in Power," which is the same message posted on Beyoncé's website after it was revealed Sibley and his friends were listening to her music and dancing while they were pumping gas over the weekend.
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"Got out the car, dancing a bit, once again, they both Vogue and were probably Voguing and just probably presenting very feminine," said Sibley's friend of 13 years, Kemar Jewel.
Surveillance video shows Sibley was confronted by a group, apparently yelling homophobic slurs.
"(They said) we're Muslims and we don't like this in our neighborhood," Myers Brown said of the story that was relayed to her.
After first de-escalating the situation, words were exchanged once again, and officials say the suspect stabbed Sibley.
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The talented dancer is remembered fondly by his friends.
"O'Shae was the type of person you could never be sad around," Jewel said. "O'Shae is funny. He's goofy. He goes out of the way to make you smile, to go above and beyond, just to make people happy."
Sibley will be laid to rest next week.
A viewing will be held from 9:30 a.m. to 11 a.m. Tuesday, August 8, at The Met Philadelphia. A Celebration of Life will follow at 11 a.m.
Philadanco! is expected to perform at the funeral.
Sibley will be buried at Fernwood Cemetery in Lansdowne, Pennsylvania.