Meghan chatted to Charlotte during her and Harry's visit to the Bondi based One Wave surfing project where they took part in an "anti bad vibes" circle.
Harry and wife Meghan will be on hand to see athletes compete on the first full day of competition on Sunday, attending cycling and sailing events in the city.
The Duchess changed her outfit from the Emilia Wickstead dress to Australian brand, Mother Jeans, an Invictus polo and Altuzarra jacket for an afternoon on the small island located in the Sydney Harbour.
The Duchess of Sussex again championed Aussie designers with a $1,615 striped maxi dress from Paris-based Australian label Martin Grant, the same designer who made the trench coat she wore on Thursday and Tuesday.
Charlotte Connell, a OneWave member, said Harry spoke of his own experiences seeking counselling more than 20 years after his mother, Princess Diana, died in a vehicle crash in a Paris tunnel in 1997 when he was aged 12.
Harry, who wore khaki pants and blue shirt, and Meghan, in an ankle-length striped dress, had kicked off their shoes to sit with members of community group OneWave, whose members wore brightly-coloured shirts and flower garlands.
"She said for her it's yoga, so being on the mat for her is like being in the ocean for us, and at 4:30 am this morning she got up and did yoga", Connell said.
"She said it's so good for healing her mind".
"We have seen the Duchess of Cambridge in sneakers and flats at more casual or athletic-themed events", Meier said.