The 53-year-old tourist apparently "took a wrong turn'' on the Big Hill Trail yesterday, and was unable to locate the track before nightfall, Senior Sergeant Paula Enoka, of Queenstown, said.
After police were contacted by the woman's friend about 8.30pm, a search was launched involving a helicopter and ground teams made up of police and LandSAR volunteers.
It was suspended about 3.15am with the intention to resume at 9am.
However, the woman found the track this morning, and while walking back to Arrowtown about 8.15am, met another walker, who called police.
"She made the right decision when she got lost, and sought shelter,'' Snr Sgt Enoka said.
Fortunately, the weather was mild overnight.
The woman, who has been staying in Wanaka, was "fine and healthy'', and would meet police later today for a debrief.
