A rousing haka kicked off the colourful parade, which saw the soldiers march down Queen St and back to the town hall to the beating of drums and a brass band.
Leading the parade was an armoured vehicle, like those used by New Zealand forces in Afghanistan, displaying the battalion colours and towing the colour artillery gun.
A number of Occupy protesters used the occasion to try to push their message but they did not interfere with proceedings, an army spokesman said.
"It was a great occasion, people enjoyed themselves, and lovely weather to boot."
Many of the parading soldiers have served overseas, with deployments in Bosnia, Timor Leste, the Solomon Islands, Afghanistan, Korea and the Middle East.