Data from the New Zealand Paediatric Surveillance Unit (NZPSU) were analysed for this investigation into the hospitalisation burden of varicella. Cases (0–14 years) were defined as varicella and post-varicella complications requiring hospitalisation, including stroke syndromes where varicella occurred in the preceding 6 months, reported to the NZPSU between 1 November 2011 and 31 October 2013. Of a total of 178 notifications, 144 were confirmed cases. The hospitalisation rate was 8.3/100,000 children per year, with over-representation among Māori and Pacific Island (PI) children, who accounted for 74% of hospitalisations and both had significantly higher incidence rate ratios (2.8 and 3.9, respectively) compared with European children (p<0.01). Complications included infection (75%), respiratory (11%), neurological (11%), electrolyte disturbance (6%) and haemorrhagic varicella (4%). Nine percent were immunocompromised. Median duration of hospital admission was 4 days, with 9% requiring intensive care admission. There were no reported deaths; however, 19% had ongoing problems at discharge.