Nattering Knitters Trust founder Caroline Dore said the group knitted more than 5000 "hug rugs".
"This year we started in February with 4500 rugs and five months later we have reached 5025," she said.
The trust was formed by Mrs Dore in 2016. It encouraged the public to contribute wool or peggy squares to the project.
The group had knitted about 15 to 20 rugs on average per week over five years.
"It is a phenomenal achievement."
Members had lost count of how many peggy squares they had received, she said.
"Recently we’ve had five Invercargill prisoners, who were learning how to crochet, who kindly sent in their donations, as well as St Peter’s College pupils," she said.
The internationally known project had received peggy squares from volunteers from as far away as England.
"We’ve had people donate from Scotland, Hawaii, England and New York."
The knitted quilts will be distributed throughout Otago and Southland.
"Where there is a need, people will receive.
"We are gifting the rugs to a wide spectrum of people."
Some of the rugs would be delivered to hospital wards in Dunedin and Invercargill, as well as rest-homes.
