The skies cleared over the resort for the first time in over a week revealing snow-covered mountains, the perfect backdrop for the southern hemisphere's biggest winter party.
Parking was at a premium as thousands of residents and visitors, rugged up to combat the bitter temperatures, made their way to Earnslaw Park to enjoy the entertainment on the main stage, with MCs Urzila Carlson and Paul Ego, New Zealand comedians.
Mulled wine warmed the insides of adults, while children, decorated with glow sticks, warmed their tummies with food from street vendors and kept warm dancing and singing.
The event started with a celebration of local talent, including performances from Wakatipu rock band The Fletcherz and winners of Songstars, an original song-writing competition.
Last year's Songstars winner, Holly Arrowsmith, who has just released her winning track Wolves and Moons, also took to the stage before headline act Dave Dobbyn.
The New Zealand music legend performed Slice of Heaven with 20 pupils from Wakatipu primary schools before the 2013 festival was officially opened by Queenstown Lakes District Mayor Vanessa van Uden.
''Enjoy the whole of the festival, be safe, welcome to Queenstown and welcome to winter.''
While many made a quick exit following the impressive seven-minute fireworks display, Dobbyn continued belting out the hits on the main stage, setting the scene for the next 10 days.
Festival highlights
TODAY
Noon: Golden Mile and Street Parade, streets of Queenstown.
7pm-10pm: Fright Night Pool Party, Alpine Aqualand.
7pm: Ice Hockey - Southern Stampede v Canterbury Red Devils, Queenstown Ice Arena.
7pm: Casino Royale Ball, Queenstown Memorial Centre.
TOMORROW
Noon: Day on the Bay, featuring Birdman, jet sprints, paddleboard race, Splash and Dash and Undy500.
7pm: Ice Hockey - Southern Stampede v Canterbury Red Devils, Queenstown Ice Arena.
