As Barbie, SpongeBob and Thomas the Tank Engine joined them, it was clear the 12th annual Santa Parade was a hit.
Despite some ominous clouds, the heavens did not open on the event, which had been postponed from last weekend because of heavy rain and the delicate nature of some of the event's 80 floats.
Organiser Malcolm Dodds said it was "fantastic" and the crowd was "extremely well behaved".
He had received a great response about the parade and the new floats, which featured Lego, The Incredibles, Madagascar and SpongeBob Squarepants.
Dunedin City Council events team leader Marilyn Anderson estimated the crowd was about 40,000, with most securing viewing spots at least half an hour before the parade started.
A concert in the Octagon was also popular, with more attending than ever before.
Despite the weather becoming cooler halfway through, people were dancing in the rain, Mr Dodds said.
Volendam cruise ship passengers, in town for the day, were seen among the crowd, enjoying a seasonal surprise.
