Prince George was sat in a baby seat in the back of a car being driven by his dad Prince William with his nanny Maria Theresa Borrallo beside him and pregnant mum Kate in the front.
The 16-month-old clutched a yellow book, looking excited as they joined dozens of members of the Royal Family.
Just moments after William, Kate and George arrived at the palace, Prince Harry joined them as did Princess Anne, Prince Charles and his wife Camilla.
Others invited to join the party included Prince and Princess Michael of Kent, their daughter Lady Gabriella Windsor, Prince Richard, Duke of Gloucester and Princess Beatrice.
The event takes place every year and gives the Queen the opportunity to meet up with members of the family who don't join senior Royals at Sandringham for the holiday.
With the Duchess of Cambridge's baby due in April (bookies reckon it's a girl who the Royals will name Charlotte), Prince George and his parents are due to relocate to Anmer Hall on the Sandringham Estate, where workmen have been extending a nursery for the little prince and his new sibling.
As well as sharing a nursery at the Norfolk property, George will also have to share his nanny, who is expected to help care for the new arrival.
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