Experienced paraglider Steve Bramfitt deep-stalled (lost forward airspeed at an extreme descent rate) during aerobatics above Ben Lomond forest.
Mr Bramfitt was brought out through rough terrain after searchers found him in bush behind Queenstown Primary School.
Englishman Mr Bramfitt, a seasonal guide for Queenstown Rafting, was found just after 10am, bleeding heavily from the face. He appeared to be mildly concussed.
On the climb down - and seemingly having no recollection of the impact - he repeatedly asked a friend what had happened and thanked those who had come to find him.
Constable Craig Gibson, of Queenstown, said police were alerted by several witnesses, and paramedics and a search and rescue team were put on stand-by.
He said Mr Bramfitt was on a non-commercial solo flight and had not deployed a reserve parachute when he got into trouble when his main chute collapsed during aerobatics.
"He's very lucky to be alive and to have walked out of the bush," Const Gibson said.
A guest at the Aspen Lodge Backpackers on nearby Gorge Rd saw the incident and told owner Sally Whitewood Mr Bramfitt had "fallen out of the sky."
The guest said the chute appeared to have folded in and had filled back up with air before Mr Bramfitt plunged into the trees, she said.
The man's associates, staff from G-Force Paragliding and pupils from Wakatipu High School searched the slopes for Mr Bramfitt, who was later treated at Queenstown Medical Centre.
An incident report will be lodged with the New Zealand Hang Gliding and Paragliding Association.
