The Duke of Cambridge told guests at the event in Wellington that New Zealanders were warm-hearted, generous people.
He said they also had “an instinctive sense of justice and freedom”.
In other remarks, Prince William joked about the loud war dance used by the New Zealand rugby team, saying his 8-month-old son, Prince George, did the haka at night.
Earlier, Prince William and Kate Middleton paid their respects to New Zealand’s war dead.
They laid a wreath in a service at the town of Blenheim’s war memorial, and later met some of the approximately 5,000 people who had gathered for the occasion.
Prince William also unveiled a new portrait of the Queen at the New Zealand Portrait Gallery, by the artist Nick Cuthell.
On Wednesday, Prince George attended his first official public engagement at a “crawl-about” with babies of similar age at Government House in Wellington, with childcare group Plunket.
Prince George will not be making any more appearances during his parents’ 19-day tour of New Zealand and Australia.
Prince William also received a tiny teddy bear from a well-wisher and was given a friendship bracelet from a little boy and immediately put it on his right wrist.
The royal couple was also given a helmet for Prince George when they visited Omaka Aviation Heritage Centre.
Peter Jackson – the film director behind the Lord of the Rings trilogy and an aviation enthusiast – showed Prince William and Kate Middleton around the museum.
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