The event, organised by the Dunedin Tamil Society and held in the Union Hall at the University of Otago, attracted about 500 people and was standing-room only.
Tamil Society president Dr Lux Selvanesan said he was "honoured and delighted" by the support the city had shown for the event, which was far more popular than he had expected.
There were 12 groups performing - and a multicultural fashion show which was so popular it became very chaotic, with people making late entries on the day, Dr Selvanesan said.
"We wanted all other cultures to share in welcoming the refugees," he said.
Indian kerala dancers, dancers from the Natyaloka School of Indian Dance, Chinese lion dancers, dancers from the Irishbeat group and Japanese drumming group O-Taiko were among the performers.
There were also items from former refugees, a Sufi group in the city, and a kapa haka performance from Logan Park High School.
Syrian refugee Waad Alsaid had been in the city for two years, and the day was a chance for her and her husband and daughters to get out and talk to others in the Syrian community, as well as to meet people from other cultures.
Dunedin has settled 387 former refugees since it became a refugee resettlement location two years ago.
Mrs Alsaid, who had been a maths and IT teacher in Syria, said she always tried to welcome new families and help them when they arrived.
However she was busy studying English at Otago Polytechnic and did not get as many chances to socialise as she would like.
For her the celebration coincided with the end of her exams.
"I feel enthusiastic to see my friends," she said. "Now I’m finished, I’m free."
Tamil society treasurer Samuel Benjamin said the society was considering making the day a yearly event.
Dunedin’s first ethnic liaison officer, Constable John Karaka, appointed about four months ago, said the occasion was a good chance to make contacts and listen to people’s issues.
"We’ve got a lot of multi-ethnic communities here in Dunedin, and I’m trying to touch base with every community group out there.
"We want to make this the safest country," he said.
Dr Selvanesan said the event had received support from a variety of groups in the community, including the police, English Language Partners New Zealand and Red Cross.
The Otago Muslim Association provided food from the mosque kitchen. Special guests at the event included Human Rights Commission race relations adviser Rakesh Naidoo, MPs Clare Curran and Michael Woodhouse, Dunedin City Councillor Aaron Hawkins and Dunedin imam Shaykh Asrarul Haque Obaidullah.
