Wanaka Presbyterian Church family connections manager Kathy Dedo estimated several hundred attended the event, while sound desk operator Grenville Craig reckoned up to 1000 could have been present.
"I had no idea what to expect. It is fantastic Wanaka came out to celebrate Christmas. Our vision was to celebrate as a community and that's what we got," Ms Dedo said.
Christmas celebrations continue on Wednesday night, when a truck will take carolers around town to sing at various locations, including Elmslie House.
A foodbank drive begins at 6.30pm tomorrow, with volunteers in Wanaka, Lake Hawea, Hawea Flat and Luggate to collect from their communities.
Donations will be given to Community Networks.
Wanaka's six churches have Christmas services planned, with details available in community newsletters and from the churches.
The annual Christmas Day "Big Feed" for travellers, backpackers and people who live alone is not being held this year because no-one was available to organise it.
