The action began at noon on Saturday as residents and visitors lined the streets of central Queenstown to take in the 32 floats in the festival parade.
From a bouncing stilt walker through to a four-legged entry - a cow, the parade was a huge success.
Once again the Queenstown Fire Brigade put in an energetic singing and acting performance, but it was the team from AJ Hackett that took out first place in the business category for their entry, complete with retro outfits, celebrating 20 years of operations, with the community section won by the scouts.
On Coronet Peak, there were thrills, spills and plenty of entertainment from the 90 competitors in the Outside Sports Mountain Bikes on Snow event.
Poor visibility did not help initially, but the weather cleared enough for them to tackle the tricky conditions.
Niall Renwick won the men's section, with Cheryl McLeod taking out the women's section.
Cam Johnson was the first junior, with Villa-Pekka Kilpelainen winning the Scooter class.
DJ Recloose fired up the heated deck in the afternoon, following the official opening of JSD's Lodge at Coronet Peak, entertaining the crowd on the mountain.
On Saturday night, more than 900 people enjoyed the American Express Jazz Festival, which sold out a month ago.
While many women had ditched their dancing shoes by the end of the evening in favour of bare feet, those in the Kawarau Falls Station Pavilion kept theirs on, being entertained by the statuesque Jennifer Ward-Lealand in Falling In Love Again, The Marlene Dietrich Story.
A large crowd also gathered at the Queenstown Fun Centre to watch the TicketDirect Southern Stampede take on the Canterbury Red Devils in another bruising encounter.
After beating the Dunedin Thunder on Friday night 5-2, the Stampede went down to the impressive Canterbury team 4-7.
There was no rest for anyone yesterday, with the SkiDealsNZ.com Day on the Bay once again proving a hit with the thousands gathered.
In the MoreFM Birdman competition, brave souls dressed up in a variety of costumes, including Superman, a gorilla and a chicken, the Earnslaw dragon and a human bullseye, flying off the wharf, hoping to impress the judges and the crowd.
The team from Shotover Jet stole the show with their impressive choreographed routine backed by music from Top Gun.
Other action included the Splash and Dash - the crowd favourite was an entrant dressed in the classic Borat V-String - and the Drag Race, in which men wearing dresses, high heels, wigs and make-up raced around the novelty course.
On Coronet Peak, the action continued with an opening party to rival any other.
Sets from New Zealand musician Midge Marsden, the Master Blasters and Kiwi rockers Goodnight Nurse were the backdrop as the first night-skiing of the season began.
Last night, those with $200 tickets to the American Express Gourmet Experience were treated to a five-course gourmet meal, prepared by some of the best chefs in the resort, with entertainment from Dame Malvina Major.
The festival continues until July 6.
Today's programme
10am: Teddy Bears' Picnic at the Kawarau Falls Station Pavilion. Tickets $10 per child, $7.50 per adult.
Noon: Millbrook and Brown at Millbrook Resort.
Tickets $79 per person.
7.30pm: American Express Great Comedy Debate at the Crystal Palace.
R18, tickets $105 per person.
