Horse Racing on the Green saw people bid for model horses on poles through an auction and then watch to see who won the race.
The event was part of the village's Platinum Jubilee celebrations to commemorate the Queen’s 70-year reign.
Robert Record, chairman of the Horsted Cahagnes Society, said: "This is an event that we have every year and we do it in order to raise money for the society."
He said the racecourse is marked out by 25 spaces and that each 'horse' has a colour.
A spinner at the top of the course is then used and the children holding the horses advance according to number the spinner lands on until one wins.
Robert said the society makes money by auctioning off a horse at the beginning of each race.
The winning horse takes 50 per cent of the total pot, the second one takes 25 per cent and the society takes 25 percent.
The event also offered a barbecue, cakes and other refreshments to those attending - all served by volunteers from the preschool.
"My favourite thing about it is just seeing the kids get involved," said Robert.
"They absolutely love it and their participation is fantastic to see."
Visit the Middy's Facebook page to watch videos from the event.
Events also took place in Lindfield, Haywards Heath, Burgess Hill and Ardingly to celebrate the Platinum Jubilee.