Its member's bill was defeated 63-59 on its first reading in Parliament today.
The National Party did not support MP Rahui Katene's bill because it did not think a holiday was necessary.
Matariki occurs around mid-winter, marked by the rise of a new moon and shifting constellations.
Most of the debate on the bill took place last month, when Ms Katene said Matariki was a very special time of year for Maori, with many symbolic meanings.
"What other days celebrate the indigenous people of our land?" she asked.
"Matariki is a festival to celebrate our unique culture and customs.
"It's a time to treasure our past. New Zealanders will embrace it, we need to find things to connect us."
Labour's Nanaia Mahuta said her party would support the Matariki Day Bill going to a select committee so there could be a discussion about whether there should be a holiday.
But National's Simon Bridges said his party was giving it the thumbs down.
"No one who heard Rahui Katene speak doubts her sincerity," he said.
"Even though I support her purpose, I don't believe it's necessary to have a public holiday to respect Matariki. The National Party won't support it, despite our respect for Rahui Katene and the Maori Party."
National and ACT voted against the bill today. All the other parties supported it going to a select committee.
