Mr Fugill was among the first class to enrol in the new carving school.
Taparotoa Nicholson, who has worked with Mr Fugill at the institute for more than 30 years, said the 50th anniversary crept up on them, but the occasion couldn't be celebrated without recognising Mr Fugill.
"There are two purposes for celebration, that we have Clive with us, and his contribution," he said.
In his speech at the surprise lunch thrown in Mr Fugill's honour, Mr Nicholson spoke of his "skill and dedication" to the craft.
Te Puia chief executive officer Tim Cossar described Mr Fugill as a "taonga" for the entire institute.
"Clive's just an incredibly knowledgeable and gentle person," he said.
"He has an immense amount of depth and meaning behind that knowledge."
Mr Cossar recognised the "perseverance and dedication" of Mr Fugill, to stick it out with the institute through its ups and downs.
However Mr Fugill puts it all down to "nosiness".
Determined to learn about his craft Mr Fugill continues learning today.
"I worry about the things I don't know," he said.
"I still learn from the new guys."
During his speech Mr Fugill spoke of a patu he had seen when he was only 9, and one that he had attempted to create himself out of wood.
As part of the celebrations Mr Fugill was gifted a patu carved by Stacy Gordine, "I've always wanted one, now I've got one," he said as he held it up proudly.
Fifty years on the institute, which began as a single carving school, now runs Te Wananga Whakairo (The National Wood Carving School), Te Rito (The National Weaving School), Te Wananga-a-kupe (The National Canoe School), Te Takapu (The National Stone and Bone Carving School), and The Foundry (a workshop in bronze casting), as well as operating Te Puia.