Visitor programmes co-ordinator Mary Dawson said 40 children were taking part in costume workshops as part of this year’s event, and there were also games and music performances.
"She’s a pretty special train.
"She’s very well loved by generations of people in Dunedin, especially children - the first thing they do when they come to the museum is visit Josephine," Ms Dawson said.
The locomotive first operated at the Dunedin-Port Chalmers Railway in 1872.
It was saved from the scrapyard and has been on display at the museum since the late 1920s.
The train was restored and moved indoors in the late 1960s.