Festival-goers were a multi-cultural melting pot of locals and visitors, many armed with umbrellas and cameras ready, and keen shoppers took advantage of The Little Big Markets.
Backpackers standing on the balcony at Harbourside Backpackers had a birdseye view of rhythm & blues, funk and soul band Juice on The Loose performing on the Coast Stage.
Meanwhile, the Jazz Village was humming yesterday as crowds gathered around performers, tapping their feet in time to the music or looking down from second floor balconies as the Twin City Stompers, a Dixieland Jazz quartet, belted out tune after tune.
First-time festival-goer Michael Verster and his family enjoyed wandering around the Jazz Village yesterday.
They were planning to check out the bands on The Strand today.
"It's more just the atmosphere and vibe is pretty cool," Mr Verster said.
Tauranga man John Whitcombe said he made an effort to check out the Jazz Village most years. "There's a bit of everything. Something for everyone," he said.
He particularly enjoyed piano accordion player Tracey Collins.
Auckland-based Ms Collins said her first experience of the festival had been fabulous and she was hoping to be back next year.
"It's great fun. I'm really enjoying it. It's a great atmosphere."
Festival publicist Megan Clarkin said: "We are really pleased that the rain held off enough so the festival could still go ahead. We're amazed by the huge numbers of people who have come along to enjoy the excellent music and other entertainment.
"It's been an excellent weekend so far, and there's heaps more going on today."