The Princess Royal was seen entertaining three-year-old Savannah at an equestrian event in the grounds of her home Gatcombe Park.
The 63-year-old was seen encouraging Peter and Autumn Phillips' daughter to stroke one of the dogs at the event.
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Anne then let her adorable granddaughter take charge of the shepherd's staff she was holding. Savannah took the stick over to her younger sister Isla Phillips who seemed delighted with her grandmother's accessory.
It wasn't just Princess Anne who was charmed by Savannah and Isla – onlookers were all looking at the cute contented duo as they enjoyed their family day out.
Proud parents Peter and Autumn weren't far away and looked on as their daughters, dressed in tiny brightly-coloured wellies, played happily together.
Soon the sisters will have a new playmate as Zara Phillips and Mike Tindall are due to have their first child in the new year.
While Zara wasn't seen competing at the horse trials over the weekend, she did have other business to attend to.
The mum-to-be attended the glamorous Boodles Boxing Ball with her husband on Saturday night.
The glowing royal, who is five months pregnant, looked radiant as she stepped out in a floor-length silk maxi gown by Seraphine, a maternity brand that is popular with Kate Middleton.
The 32-year-old was all smiles as she arrived at the Grosvenor House Hotel for Saturday's soiree.
The accomplished horse rider completed her look with black high heels and a sparkly gold clutch, and pulled her blonde hair back in a low ponytail.
The Queen's granddaughter was joined by a host of famous royal faces at the lavish event , including her cousins Prince Harry, Princesses Beatrice and Eugenie and Pippa Middleton and her boyfriend Nico Jackson.