Several have continued on to full-time dance careers, achieving success nationally and internationally in Australia, the United States and the United Kingdom.
"For the last few years, I've had a connection with a grandma, taught the mother, and now I'm teaching the daughter. That's an interesting process," Underwood said.
The support of her husband, Geoff Underwood, over the years had been amazing, she said. "I was teaching dance when we got married, and that's a long time ago.
"I've been lucky for lots of reasons. I feel blessed."
Underwood has organised whole studio productions which are performed at the Royal Whanganui Opera House, with all proceeds from these shows subsidising her students into further education or trips to the US or Australia to gain experience.
The Opera House played host to the dance school's Moving with the Times show last April, which celebrated 50 years of teaching in Whanganui.
Former students Mark Lace, Sarah Seville, Nikita McDonald and Joana Simmons choreographed dances for the students.
Since 1995, Underwood has been national co-director of the AJDA (American Jazz Dance Affiliation). Having initially been a technical examiner, she has continued to update the syllabus, organise annual teacher workshops and deliver a biannual four-day teacher and student congress.
Underwood jointly established New Zealand's longest-running and largest dance convention, Phoenix Dance Workshop International, in 2010.
It is held annually in Palmerston North and Hamilton. She was "really humbled" to receive the Queen's Birthday honour.
"I just feel really lucky that I've had something in my life that I've really enjoyed doing." As for the next few months, she would continue to teach the seniors at the School of Dance.
"That's from Year10 and up. "I've also got four students dancing full-time in Australia at the moment, at two different performing arts schools.
"I'm planning on going to see their graduations in November and December. Luckily, they fall a week apart."