The streets were clogged with traffic all day and hundreds of people milled around the streets of the resort, waiting for the action to begin.
The 34th festival was officially opened by Prime Minister Helen Clark and began without a hitch - a far cry from last year, when heavy snowfalls the day before the festival started caused havoc, forcing the cancellation of the festival opening for the first time.
Yesterday, hundreds of people headed to central Queenstown, choosing their spot on Earnslaw Park to see comedian Te Radar, Kiwi musician Midge Marsden, backed by the Master Blasters, and Diva.
The crowd had swelled to thousands by the time the impressive fireworks display lit up Lake Wakatipu in front of Earnslaw Park.
Cheers could be heard all over town as the display started, with cars pulled over on the streets and honking.
However, the display did not go exactly as planned, as two unexploded fireworks caused some panic at the end of the display.
The first landed in the crowd and exploded seconds later, to the horror of those around it, but thankfully no-one was injured.
The second landed on the roof of the Prime Restaurant, which backs on to Earnslaw Park, then exploded.
Shortly afterwards, the Queenstown fire brigade was called to the Queenstown Gardens because of concern another firework had landed there.
The festival action continues today, beginning at noon when the Festival Parade and Family Fun Day takes over the streets of the resort.
Coronet Peak's $30 million base building redevelopment will be officially opened at noon today.
