Taking off her jacket and showing the crowd her bare back, Lorde laughed as she explained that her "shirt has become disconnected from my body".
"Will you give me a second to fix this and I'll run back?" She asked the audience. "This is crazy, talk amongst yourself."
Leaving the stage for several minutes, the crowd broke out into a rendition of DJ Otzi's Hey Baby (If You'll be My Girl) and applauded as Lorde made her way back out on stage.
"Hello again I'm back," Lorde said. "That should be fine now."
During her Splendour set Lorde paid tribute Australia rock band Powderfinger, covering their song My Happiness.
Meanwhile, a woman's creative attempt to smuggle drugs into Splendour in the Grass has resulted in her arrest.
The young woman tried to enter the festival with 12 MDMA capsules hidden in a jar of home brand chocolate hazelnut spread when she was arrested.
It came after Lismore officers searched her car as she went to enter the festival campground in Byron Bay.
The 22-year-old woman from Queensland was removed from the festival and issued a court attendance notice for possessing a prohibited drug.
Police warned punters would be denied entry if found with drugs, but said they wouldn't be ripping up tickets if a sniffer dog simply indicated traces. Police confirmed drugs would have to be found for action to be taken.
A post on the NSW Police Force Facebook page said police would be targeting "illegal drug use and supply, as well as alcohol-fuelled violence and anti-social behaviour" at the festival.
At last year's Splendour festival, 267 people were caught with illicit drugs and 146 received court attendance notices.
