The woman appeared in the Dunedin District Court yesterday morning before community magistrate Sally O’Brien where no plea was entered and bail was not sought.
Court documents said the incident allegedly involved a stabbing or cutting weapon.
The names of the defendant and the deceased were suppressed.
The case will come before the High Court next month.
Police said they were called to a Tainui address about 5.20pm on Thursday, where a man was found dead.
Detective Senior Sergeant Nik Leigh said the defendant was taken into custody at the address and they were not seeking anyone else in connection with the death.
There would be an increased police presence in the area while investigations continued.
"We know that this tragic event has shaken the community, and police and Victim Support will be working closely to offer support for all involved," Det Snr Sgt Leigh said.
Neighbours and friends said the arrest came as a surprise.
One friend of the woman said he used to go to her house for barbecues.
"There were no red flags at all. She’s lovely."
A neighbour said police cars initially showed up under lights but without sirens.
About 10 police cars and three ambulances attended, he said.
"They just went on to the footpath and went inside and started setting up," he said.
He saw an older lady in the back of a police car.
He did not know the couple who lived in the house, other than recognising them from afar.
They had been living in the street for about a year.
The alleged murder came as quite a surprise, since the neighbourhood rarely had a police presence.
"It’s a bit full-on; it’s hard to process. She didn’t look like she could kill a guy, she looked just like an old lady in the back of the car — I thought maybe that she was a witness," the neighbour said.