Smith, of Queenstown, won Apra Best Children's Song 2018 on Sunday for The Scariest Thing In The Garden.
He won the same award in 2009 for his now-classic song The Wonky Donkey.
Mr Smith is in Hong Kong on a five-week tour of Asia, during which he will perform more than 90 shows at schools and libraries.
``I won it in 2009 but haven't had a look-in since then - I've entered two songs a year and not even made the final,'' he said.
``This one must have struck a chord with the judges. I'm delighted.''
The Scariest Thing in The Garden is billed as ``a fun (and a little scary) story and song, sure to appeal to the children as well as the adults in the home and make you smile''.
Mr Smith said he was motivated to write the song by trying to get his daughter Maia to eat vegetables.
The awards were announced at the weekend by Apra Amcos.
Apra, the Australasian Performing Right Association Ltd, and Amcos, the Australasian Mechanical Copyright Owners Society Ltd, amalgamated in 1997. Apra Amcos licenses organisations to play, perform, copy and record New Zealand and Australian music.
Mr Smith is also working on his eighth book, The Drizzly Bear, with Alexandra illustrator Bruce Potter.
He is crowd-funding the book and the release of a 17-track two-CD album, Not Just for Kids 2, through website Pledge.
Award winner . . . Craig Smith and his daughter Maia (2) read The Scariest Thing in the Garden.
