Dragon will headline the music line-up at the town's biggest street party of the year - the four-hour-long Mardi Gras - as part of the ongoing Queenstown Winter Festival.
Todd Hunter founded Dragon with his brother Marc in January 1972.
Since then, a long line of musicians have played in the band.
Known for songs such as Are You Old Enough? and April Sun in Cuba, Dragon has sold more than two million albums.
The present line-up joined in 2006 when Todd Hunter decided to reform the band after a 10-year break.
"I had never thought I would want to reform the band.
"But at some point I felt the need to play those songs again, which are still played on the radio," he said.
"Every phase of Dragon's life has had a different energy, while still being true to the roots.
"The current band is true to Dragon's songs, but also has a contemporary feel to it.
"I am sure we will keep doing this until we die. We have no plan B," Hunter said.
New Zealand singer Mark Williams, who joins bass player Todd Hunter, guitarist Bruce Reid and drummer Pete Drummond, said the band was excited about playing in Queenstown.
"I was last here in 1975 with another band, and I am amazed at how much this town has changed since then," he said.
The four band members said their performance tonight would be a mix of the old favourites and songs from the group's latest album Happy I Am.
"We are very curious to see what sort of audience we get at tonight's gig.
"The fans of Dragon are incredibly loyal, and often sing along louder than we play.
"We will be encouraging that here in Queenstown as well, though many in our audience might be visitors, who are not quite so familiar with our songs," Williams said.
The Mardi Gras will be a massive street party spread over stages at Earnslaw Park and Beach St with a variety of performers, plus a dance party at Cow Lane.
The street parade will begin at 5.30pm.
Yesterday was an active day at the festival, where the early birds were invited to battle the morning frost with a session of retro aerobics at 7am, followed in the afternoon by a dynamic round of "body jam" at 5.30pm.
At the Ice Box tent in central town, the bubbles were flowing freely when the Lindauer Ladies Fashion Afternoon threw a party to celebrate the 12 women who had been through a strenuous 12-week fitness and fashion challenge.
The women wowed the audience when they showed off their new fit looks on the catwalk.
The fashion show was complemented by energetic dance performances created by choreographer Anna Stewart.
A solid exercise of the laughter muscles rounded out the evening when the sold-out Comedy Gala presented 10 of New Zealand's best comedians, led by Jeremy Corbett, in a satire show.
The Queenstown Winter Festival continues all week.
