The event was among the more intimate on the tour with only 50 members of the public allowed in the arboretum, winning their place in a ballot in which there were more than 12,500 applications.
Kate, wearing a stunning emerald green Catherine Walker dress, particularly seemed to enjoy meeting the children, graciously accepting the gifts, asking their names and peppering them with lots of questions about the schools they attended.
"Oh, look at that. That's fun," she said of one toy for George.
"Super. Lovely peaceful spot," was William's summation of the arboretum.
Christine Wall, of Tuggeranong, said, "They're so impressive. It was so lovely to actually meet them. It's a once-in-a-lifetime opportunity."
Callan Bourke, 11, of Chapman, gave the royal couple copies of Diary of a Wombat by Jackie French and a touch and feel Steve Parish wombat book. His mother, Annie, said the royal couple said they would read the books to George tonight.
"They were so gorgeous, so beautiful. Very natural and lovely," Mrs Bourke said.
ACT Chief Minister Katy Gallagher said they chatted about the history of the site, a former pine plantation destroyed in 2001 fires and set aside as an arboretum in the wake of the devastating 2003 bushfires, with 100 forests planned for the hillside location.
The oak planted by the young royals was the 48th planting by a dignitary, with past high-profile planters including Danish Crown Princess Mary, the Sultan of Brunei and several visiting world leaders.
Kate and William later attended a reception at Parliament House and last night at Government House.
The royal couple will attend the national Anzac Day ceremony at the Australian War Memorial today.
- AAP