"It was really cool the way the parents and staff all reacted, even a member of the public helped."
The member of the public spotted where the thief went so the parent picked up Mr Watkins and drove him down a cul-de-sac to the edge of a park where the determined principal continued the chase on foot.
Mr Watkins said as he was closing in on the thief, the chain came off the bike. The thief dumped the bike on the ground and ran off.
"At that point I had enough of running and I just wanted to get the bike back," Mr Watkins said.
Dylan said he was pretty happy to see his bike again, which he was given a month ago as an early Christmas present.
His mother, Claire Armstrong, who had been attending the meeting at the school while her son played on his bike, said she had only today been talking to him about being careful where he left it.
Meanwhile, Mr Watkins said he didn't hesitate to run after the thief and was pleased there was a happy ending.
"I just took off. I wasn't going to let him get that bike."
A Rotorua police officer attended and took a description of the thief.