Prisoners at Otago Corrections Facility at Milburn have made about 100 wooden toys for children as part of a level two building and trades course offered in the prison.
"This has been a really rewarding project for the men,'' assistant prison director Gill Brown said.
"The men were keen to make something extra special to brighten a child's Christmas, as well as supporting local charities.''
Most of the toys would be given to the Angel Tree Family Care agency, Mrs Brown says.
They included planes, graders, cars, hobby horses, boats and pull-along elephants.
The agency provides support for children who have or have had a parent in custody.
A few toys would also be given to local Milton pre-schools, which would either keep them or hand them on as Christmas presents, she said.
"We all know that for many families, Christmas can be quite stressful, especially financially.
"Many of the men in the prison know this first-hand, either from their own childhoods or as parents.''
One prisoner, "John'', said Christmas was a struggle when he was young and was even tougher for young families now.
"It wasn't flash, but we got by.
"It's great to think that the toys we are making will do something to take a bit of the pressure off a family.
"There's lots of hardship and sadness out there. I hope the toys put a smile on someone's face.''
