Half the giant tree on the back of a contractor's truck was snapped off when the float turned on to Thames St at the start of the parade and the tree tangled with a telephone line.
The incident snapped the phone line and the top of the tree had to be left behind.
Three times in a row, Oamaru Pacific Island Inc had won the Otago Daily Times Cup for the best float in the annual Christmas Parade, but three years ago, the group stopped entering the parade.
This year they decided to re-enter, about 50 people spending a week preparing the design and materials for the float, the group's spokesman Tonga Havea said on Saturday.
On Friday, they put in about five hours building the float on the back of a truck loaned by Whitestone Contracting Ltd, then another hour finishing it off before the start of the parade at noon.
Helped by the loan of a generator, and other equipment, the group's float delivered a mobile concert as it moved down lower Thames St, continuing in Takaro Park.
Mr Havea said the showpiece of the float was the giant decorated Christmas tree, but it was "de-masted" at the start of the parade.
"As we turned on to Thames St it hit a telephone line, bringing it down and taking the top off," he said.
But "lots of organisation and hard work" still paid off with the top award.
"We decided to put a float in the parade again this year after three years because we wanted to give something back to the community," Mr Havea said.
This year's Christmas parade was one of the biggest, taking more than an hour to pass.
It was led by about 30 "big rigs", had a dozen classic and vintage cars, then the floats, with Santa Claus at the rear.
The thousands of people that watched the parade, followed it to Takaro Park for entertainment and the float awards.
Results were.-Best overall float (Otago Daily Times Cup): Oamaru Pacific Island Community Inc.
Otago Daily Times best business float: Fusion Hair Design; runner-up, North Otago Toy Library.
Oamaru Licensing Trust best community float: Oamaru Pacific Island Inc; runner-up Ardgowan School.
Waitaki Chamber of Commerce best Christmas decorated float: Elim Church.
