The event was for Worldwide Knit in Public Day, which was started in 2005 as a way for knitters to come together and enjoy each other’s company.
Museum programme and events co-ordinator Rachel MacJeff said the museum hosted a wide variety of activities to celebrate the occasion.
There were knitting tutorials, activities with pom-poms, cabling workshops and space for people to sit and work on their projects.
The Taieri Spinners and Weavers club had set up a work station showing off its members’ work and Knit World was holding beginner knitting lessons.
A range of large knitted animal sculptures were on display at the museum in the Animal Attic as part of an exhibition by local artist Michele Beevors.
Ms Beevors would be at the museum to discuss her work later that day, she said.
Knit World manager Shalini Mani was at the museum teaching beginners how to do their very first stitch.
She said it was amazing to see how many young people were interested in trying knitting.
The growth of the internet had made it easier than ever for people to get started, as they could look up video tutorials and learn the basics from home.
Many people were hooked after making their first few stitches.
Despite many patterns being available for free on the internet, a lot of people still came in to the Dunedin store to buy paper copies.
Dorothy Howard celebrated the day for the first time with her daughter, Sally-Ann Howard.
Dorothy said she had been knitting since she was "knee-high to a grasshopper".
The 84-year-old started in pre-school and had spent time knitting professionally.
She was working on squares for a blanket, and she would need about 20 to make the finished product.