Mr Dennison said between 600 and 800 children and their bears registered for competitions, and as many as 3000 people came to the event.
"It's an entirely free entertainment show for kids. We have really old-fashioned fun stuff like face painting, hair braiding, puppet shows, magic mirrors and music. We also have competitions for judging of the teddy bears and their owners.
"There are spot prizes, too, which we get from sponsorship from different businesses. Their generosity is incredible, especially in these hard economic times," he said. The event is also supported by the Masterton Christian Childcare Programme, St Matthew's Collegiate students, and the Rotary Club of Masterton.
The Henley Lake Teddy Bear's Picnic is on Saturday from 11.30am to 1.30pm.