'A bit of glamour': royal sighting leaves fans smiling

The pair spent much of their afternoon visiting sustainable and renewable energy developments, with a stop at a project in the inner-city suburb of Prahran.

Host mother Cris had decided to take her Danish high school exchange student Ulrich to catch a glimpse of the royals as they walked out in public.

"Catch a glimpse, perhaps a wave. Tick and tick," Cris told AAP.

It was a special moment for the Danish exchange student who has been to the palace for the King's birthday and also during royal events at home.

"I've seen them before, but not as personal as this," Ulrich said.

"It was pretty cool, like, getting eye contact with the queen was really cool."

"She clearly recognised his (red and white) scarf. She was walking, and then she looked, and then she looked again," Cris said.

For workers Sarah Muschamp and Amelia Annat, a chance to see Danish royalty was a once in a lifetime opportunity.

"We ran off and left our lunch behind ... they are so close and this is too much of a good opportunity," Ms Annat said.

"We saw the entourage and the police and the sirens and everything in the buses, and we knew something was going on."

Ms Muschamp likened Queen Mary's story to an Australian fairytale.

"It's not a normal day. It's a bit of glamour, just fun. Although my mum would kill me if I didn't get a glimpse of her," she said.

The royal couple were earlier greeted by Governor Margaret Gardner and her husband Glyn Davis for an official reception and signing of the visitors book at Government House

The pair are spending Tuesday and Wednesday in Australia's laneway and coffee capital, before continuing on to Mary's home state of Tasmania.

It is their first visit to Australia since taking the throne in 2024 and has already included a meeting with Prime Minister Anthony Albanese and other dignitaries in Canberra, and a visit to Uluru.

King Frederik described Australia as the couple's second home, having met the Hobart-born queen in a Sydney pub during the 2000 Olympics, before the pair wed in 2004.

After touching down in Australia on Saturday, the pair snapped pictures at Uluru's sunset viewing site and heard about the Anangu people's spiritual and cultural connection to the lands.

They also took a guided walk to Mutitjulu Waterhole in the Uluru-Kata Tjuta National Park, with the Queen describing their time in the Northern Territory as, "a really great start to what will be an exciting visit".

The official aim of the trip is to deepen trade ties between Queen Mary's adopted and home countries, with a focus on clean energy.

Two-way trade between Australia and Denmark was valued at more than $3 billion in 2024, primarily made up of imports from the Scandinavian country.

They are expected to spend time with Queen Mary's relatives in Tasmania, including her elderly father John Donaldson.