East Timor Prime Minister Dr Rui Araujo is visiting this week to mark what Prime Minister Bill English said was the "evolving relationship" between the two countries.
Araujo was a student at Otago University in the late 1990s and will revisit his old stamping ground as well as meeting with English.
His delegation will also meet business groups which the East Timor Government is hoping to learn from as it builds its own economy - such as a farm and the Royal Albatross Centre in Otago - an eco-tourism venture.
English said New Zealand and East Timor had a special bond after New Zealand took part in the peacekeeping mission as it went from Indonesian rule to independence.
"The relationship with New Zealand is now evolving as Timor-Leste's economy and society grow and develop."