A large crowd lined the main street at midday to watch the procession of colourful floats and enter into the spirit of Christmas.
An impressive display of trucks began the parade, some festooned with tinsel and other festive trappings, and honking their horns loudly.
A roller-skating Ronald McDonald heralded the start of the float procession, which attracted 42 entries.
There were cyclists, marchers, musicians, fire trucks, army vehicles, tractors and vintage cars, while two pipe bands added a Scottish flavour.
The Noddy train was there, along with young trolley enthusiasts and the Oamaru Operatic Society was promoting its next production, Les Miserables.
The North Otago A and P Association's entry included the reigning Miss A and P, Ashleigh Sinclair, and runner-up, Moana Bufton, riding on hay bales, followed by a variety of animals, including goats, dogs, lambs, horses and cattle.
Anticipation mounted as Santa Claus - who brought up the rear of the parade - drew near.
He waved to the crowd and went "Ho, ho, ho" from his reindeer-pulled sleigh as little necks craned to catch a glimpse of him.
The best business float award was won by Shaun Cunningham Builder, while best decorated float went to the Waitaki Multi-Cultural Group.
The Elim Church won for the best community float.