Carnival event manager Xanthe Naylor said the festival was expecting about 4000 people yesterday evening and another 4000 people tonight at First Church despite the poor weather.
"I think Dunedin can battle a little drizzle, we’re pretty used to it."
"It’s cold and wet and raining and you just need something to go out and inspire you.
"It brings the community together and brings warmth and magic into the centre of the city."
The event included lots of roaming performers and glowing displays of mystical creatures handmade by local artists.
The crowd could either huddle around a brazier or walk through the church where there were performances at the altar and a butterfly house display called the "fluttering meadows".
Dunedin resident Lauren Pearce brought her son Lucas to the carnival and said it was very exciting.
It was her family’s first time at the event and they were looking forward to exploring all of the displays and trying some of the food on offer.
