Host Simon Barnett singled out 82-year-old Rose Vandervliet to climb onto the stage and hug the team.
She held the Webb Ellis Cup in one hand and her groceries in the other before giving coach Graham Henry a big hug.
Henry said he loved a cuddle.
"Winning the cup was a beautiful feeling and these young men were the reason for it,'' he said.
"Richie and the team were inspired by all of you out there, and I hope you got inspired by them today, and what they did on Sunday.''
He admitted during the game he was "s******* himself''.
"These guys had a huge amount of courage, just like you guys [in Christchurch] have over the past year.''
He said Stephen Donald was the ideal team person. "He's a magnificent man, a great player, and he won us the game.''
However Donald was more modest, saying "I had a job to do. It was just another kick to put over.''
David Lomax from Wigan had followed his national team around the country. While he was disappointed the English didn't make the final, Mr Lomax said he had come out today to cheer on the team that deserved to win. He said he had turned out at today's parade to cheer on the whole squad. "They really deserved to win. They played superbly throughout the tournament.''
There were no barriers separating the All Blacks squad from the people packing the fanzone.
Canterbury Crusaders players Dan Carter, Kieran Reid and Brad Thorn received a deafening reception from the crowd as they entered the park.
But the loudest cheer was reserved for McCaw, who came to the stage last.
The final match was the toughest of the cup and it had taken everything the All Blacks had to win it, he said.
"We knew the French were going to come out like that and they did. I want to take my hat off to every one of the guys."
The All Blacks earlier travelled Park Terrace and Rolleston Avenue on their way to the Hagley Park fanzone. Prop Owen Franks said it was really good to be home. "There's a great crowd down here. It's really nice Christchurch could come out and support us. The support from Christchurch has been amazing. Even though they didn't get any games they've been some of the best supporters.''
Cory Jane added: "It's pretty cool to spend a couple of days down here and put some smiles on some faces.''
Corey Flynn was impressed by the turnout. "Awesome to be able to come down here. I'm actually looking for my kids in the crowd, but I think they may have been pushed to the back.''
Aaron Cruden said the last couple of weeks have been surreal. "I'm loving every moment of it.''
Kieran Read said it was great to be in Christchurch. "I know they've been through a lot. It's great to be able to show off the Cup.''
Israel Dagg said it was nice to be able to put a smile on people's faces. "It's a shame we couldn't come and play here, so we're here now and we're giving back to the people of Christchurch.''
Conrad Smith agreed: "It's great to be here. We always hoped we'd be here, but during the tournament we just worry about each game. Now we can enjoy it.''
Zac Guildford was pleased to be in Christchurch. "Under different circumstances we would have played here, but it's still great to be here in some way,'' he said.
"I don't think the crowd is quite as big as yesterday [in Auckland] but it's still fantastic. The support from Christchurch has been great.''
Earthquake damage meant Christchurch missed out of hosting Rugby World Cup matches, but the All Blacks hoped today's tour would include residents in the tournament.
Seven-year-old Noah Smith had his very own Webb Ellis trophy sitting on the television for the past six weeks. The plastic cup, made from a container, has been his good luck symbol while watching the All Blacks storm to victory.
Vach Siebig, 2, was in the front row to see his favourite All Black, Dan Carter. His mother Megan Lovell, 30, said it was awesome the All Blacks had made the trip to Christchurch.
"It's been some really hard times but great to get the opportunity to see our favourite All Blacks."
Six-year-old Carter Mossop had come all the way from Cust in north Canterbury to see his namesake.
He was disappointed when Dan Carter left the tournament early because of injury, but was looking forward to seeing his hero.
Earlier today. about 500 noisy fans at Christchurch Airport welcomed the All Blacks to the Garden City for this afternoon's parade.
Airport security staff gathered around and clapped as captain Richie McCaw stood on the tarmac with his team and the Webb Ellis Cup.
Outside the airport fans lined the team's route to their bus, with children perched on shoulders to get a glimpse of their heroes.
A group of teenage girls held up "I love Izzy" signs as squeeled as All Black and Crusaders fullback Israel Dagg walked past.
The All Blacks, who defeated France in the Rugby World Cup final on Sunday, were flown from Auckland on a special Air New Zealand airbus painted black and with silver fern detail.
All Black assistant coach Wayne Smith said he lived in Christchurch and knew what the visit would mean to the city.
"I think the city will reflect on the fact that we've had a hard 14 months down there, and this is just a game of footy, but for a day or two it will give a lot of cheer to people."
City mayor Bob Parker encouraged as many Cantabrians as possible to take the time to come to the team's parade and celebrate their incredible sporting achievement.
"We are thrilled to be hosting our rugby heroes for the afternoon and I'm sure many Christchurch residents who have been watching all the action from afar will be delighted to come and cheer on their team in the flesh as they parade through our streets.''
Wellingtonians will have their chance to congratulate the Rugby World Cup-winning All Blacks when the travelling show that is the victory parade hits town tomorrow.
Tomorrow is Wellington's turn, with the parade kicking off at Civic Square at 12.15pm before making its way down Mercer Street, Willis Street and Lambton Quay to finish at Parliament.
New Zealand Rugby Union chief executive Steve Tew said the team had been blown away by the support they had received in Auckland and Christchurch, and from fans nationwide.
"The team have been humbled by the huge turnout of fans, as well as the messages of support, and are looking forward to continuing the celebrations with Wellingtonians before taking a well-earned break,'' he said.
Wellington Mayor Celia Wade-Brown encouraged Wellingtonians to dress in black as a tribute to the team's achievements.
