Tamsin Duckmanton (28) was awarded the Royal Humane Society of New Zealand's silver medal by Governor-General Sir Jerry Mateparae at Government House in Wellington today.
The medals are given for acts of bravery, where rescuers put their own lives at risk to assist others whose lives are in peril.
Ms Duckmanton exhibited extreme bravery and quick thinking when the interior of a people-mover caught fire in a supermarket carpark in Palmerston North on January 14 last year.
A 3-year-old, and a 10-month-old were inside the car while their mother was collecting medication from a nearby pharmacy.
Those present at today's ceremony, were told that Ms Duckmanton was putting groceries away in her own car, when she heard calls that children were trapped in the burning car.
She responded immediately by running to the vehicle, where people were working to pull the carseats from the backseat.
Knowing the carseats would be strapped in, she jumped in the back and worked quickly to unbuckle the children.
Eyewitnesses at the time described the burning interior as a fireball. But despite this, Ms Duckmanton managed to free the baby girl. Then, while holding her in her arms, she reached over and unbuckled the toddler.
Because she was holding the baby she asked the toddler to jump to her, before carrying both to safety.
Ms Duckmanton and the children were treated for smoke inhalation and burns at the scene by St John paramedics. The baby was taken to hospital for observation.
Ms Duckmanton said despite all the anxiety on the day, she could still recall what happened.
"It was all so sudden it happened so quick, so I only got time to re-think about it when I sat down after I had been in the ambulance. But yes, I do remember quite [vividly] the day."
She said it was "overwhelming" to receive a medal at today's ceremony, which she attended with her mother and other family members.
However, she was reluctant to label herself a hero.
"I don't think anyone reacted as quick as I did - but if I hadn't of done it someone else, I'm sure, would of come straight after me ... It was just instant thinking - it was just do it."
Two men honoured
Also recognised at the ceremony at Government House were Benjamin Dare and John Oakes.
Mr Dare saved the life of his injured climbing partner, Scott Blackford-Scheele, in their attempt to climb Anidesha Chuli in Nepal in April 2013.
Mr Oakes, a helicopter pilot, was recognised for going to the aid of three people injured in a helicopter crash in Antarctica, ensuring their overnight survival until the weather enabled them to be lifted to safety the following day.
The Royal Humane Society medals are awarded for acts of bravery, where rescuers put their own lives at risk to assist others whose lives are in peril.
Sir Jerry, who is also the patron of the Royal Humane Society, said it was an honour to present awards to those who had put "there lives at risk to save another".
"[These people] have demonstrated exemplary bravery, and it is appropriate they are recognised in this way.
"They demonstrated the greatest of human qualities, selflessness, courage and compassion, in risking their own lives to save that of another."
