The couple took part in a walkabout where fans lined the beach to meet the couple and gift them with everything from the typical teddy bears to carrots.
Earlier that day the Duke and Duchess met locals along Government House Drive before heading into Government House for a reception hosted by the Governor of Victoria the Honourable Linda Dessau AC.
The crowds screamed Harry's name as the couple had to depart before meeting everyone, but not first without a quick chat with the lifeguards.
The pair met OneWave, a community surfing group, for Fluro Friday - a session aimed at mental health awareness, with an "anti-bad vibes" circle and yoga practice.
Meghan and Harry diligently inspected a scaled miniature Formula 1 auto designed and made by Trinity Grammar students, but as the mini vehicle zoomed down a makeshift track, Meghan jumped and covered her mouth, before nervously bursting into laughter.More news: Barnier: Brexit deal at 90%, Ireland a 'sticking point'
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"We got them a little lifeguard uniform - mini shorts, mini shirt".
"Each and every one of us will experience poor mental health", Harry reportedly told the group. It's one of 76 engagements Prince Harry and Meghan are expected to attend during a whirlwind 16-day tour of Australia, Fiji, Tonga and New Zealand.
"She said she was up at 4:30 am this morning doing yoga in her room as she couldn't sleep", McConnell revealed.
As for how the mom-to-be is doing with all this travel, Meghan told reporters she's "running on adrenaline" and feeling "a bit exhausted". He opened up on the beach about the role Meghan has played.