The Dutch Embassy has hosted traditional Saint Nicholas Day celebrations in Canberra, including three white men with blackened faces dressed as the controversial character Zwarte Piet.

The festivities held on Sunday were organised by the Canberra Dutch Club and have taken place at the embassy for several years.

This year there were three men dressed as Zwarte Piet, who the Embassy said was "very much part of Dutch culture".

The debate around Zwarte Piet, or Black Pete, has divided the Netherlands and sparked protests in the country in recent years.

In Dutch tradition, Zwarte Piet is the helper of Saint Nicholas, or Sinterklaas, and is usually depicted in a medieval costume with a blackened face, red lips and a curly wig.

Opponents argue the character is a racist stereotype dating back to colonial times.

Others say he is black from coming down the chimney, and argue there is no racist element to the character.

Last year 90 people were arrested for protesting against the controversial figure at a children's Christmas festival in the Netherlands.

But the managing director of anti-racism group All Together Now, Priscilla Brice, said she was disappointed to hear the Black Pete tradition was being celebrated in Canberra.

"I'm pretty shocked that it's happened here in Australia and that people have brought those issues over to Australia," she said.

"Anybody who commits blackface, they're unaware of that history [of slavery and racism against black people], they're disrespectful to the people who were slaves and basically trying to pretend that you're from another culture is offensive anyway regardless of what culture." (absolute nonsense  )

Ms Price said while Black Pete was a Dutch tradition, it was still a form of racism that could have wide-reaching implications.

"We know that people who are frequent targets of racism experience for example anxiety and depression, and some also experience physical issues like diabetes and high blood pressure," she said.

"That goes for people that have experienced interpersonal racism and institutionalised racism.

"So it affects individuals, but it also affects society as well."

This controversy has been around for some time, but it's mostly driven by US cultural influences.