Harry and Meghan stopped to play with five-and-a-half-month-old Harriet Bonaddido and chatted with her mother Jessica.
The 28-year-old said: “As soon as I introduced my daughter to Harry he said ‘that’s a great name’.
“Maybe they will choose it for their own child which would be fun.
“Meghan was right behind him and was playfully tickling her toes and said how sweet it was that I’d brought her out today.”
While meeting the crowds, Meghan stopped for 10-year-old Courtney Pistone, who gifted the duchess a stuffed bear.
She said: “I gave it to her for the nursery. I thought it would be suitable because we didn’t know if it was a boy or a girl and both boys and girls like bears.”
The couple then met the Governor of Victoria at Government House, where they met community leaders and watched sporting demonstrations with ambassadors from the This Girl Can campaign.
Here, Meghan mastered a very Aussie skill.
In the afternoon, the couple will take a tram ride to the coast where they will meet primary school children and take part in a beach clean.