The monarch's attendance at the event - a favourite of his late mother - has been interpreted as a further sign he is responding well to cancer treatment.
Zara, 42, appeared overjoyed to see him as she pulled him in for a hug and kissed him on the cheek. Then they enjoyed a chat while sheltering from the rain at the five-day event, which finishes tomorrow.
Wearing a large parka coat to protect him from the inclement weather, the 75-year-old monarch looked delighted to be out and about.
Among his group were Lord Soames, a long-time friend who served as his equerry when he was the Prince of Wales, comic Rory Bremner, former racing driver Jackie Stewart and ex-Defence Secretary Ben Wallace.
Enthusiasts
Charles, pictured yesterday inset, was also seen chatting to Simon Brooks-Ward, director of the horse show, who knew Queen Elizabeth well.
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