The capsule was uncovered by past pupil Mike Stanley, who had been using his metal detector in the school grounds to search for another capsule buried in the 1980s but as yet not found.
Broad Bay School new principal Rebecca Gilbertson said the time capture was an exciting opportunity for the tamariki to learn about the history of the school.
"There was no record of a time capsule on the school files, so I was unsure exactly when it had been buried and when it was due to be opened.
"As it turns out, we were a little earlier than the originally intended — 2027 — but it was wonderful to see the treasured letters and artefacts left by the students," she said.
Inside the time capsule were letters and drawings from pupils, an Otago Daily Times dated December 12, 2002, money, journals from the week-long camp at Waihola and a letter from staff listing recent fun activities, including a trip to the movies to see Harry Potter and the Chamber of Secrets.
"Their hope was that, in 25 years’ time, the staff would be as productive and wonderful as their staff was and that the school would be a thriving little community," Ms Gilbertson said.
"I’m delighted to say that the incredible foundation laid by these previous generations of kaiako and tamariki has made Broad Bay School the amazing little school it is today — a kura with a strong heart."
Beth Garey, 26, who was the youngest pupil at the school at the time the capsule was buried, was there last week to help dig it up.
Inside, she found her own signed note, typed up by her mum Christine Garey, now a Dunedin City Councillor.
The note read "I was really lucky because at the 125th birthday of my school I planted the tree. That was because I was the youngest pupil.
"I like my school because it has a tyre swing and lots of room to play inside and outside."
Twenty-one years on, the tyre swing and space for children to play are still features of the school, which now also boasts a sensory walkway, garden and outdoor pizza oven for the school’s garden to table programme.
Last week, Beth Garey and Broad Bay School’s current youngest pupil Tobin planted a second magnolia tree, to replace the one she helped plant two decades ago.
The time capsule has been replaced, with a new photo of the 2023 Broad Bay staff and pupils and a note saying the capsule was replaced in 2023.