Senior Sergeant Anthony Bond, of Dunedin, said police were called to Moray Pl about 8.30am after numerous calls about a man strolling through the central city in the nude.
The 28-year-old man had allegedly partied too hard on an overnight bender and remained under the influence of narcotics into the morning.
He was arrested and was being held by police "until he clears his head", at which time police would decide whether they would lay charges, Snr Sgt Bond said.