For the third successive year, the free-of-charge event was organised by the mayor, while town clerk Eleri Maskell organised the schools' singing and road closure for the Christmas lights switch-on.
The grotto is set up in a decorated (chairs, throws, decorations and a tree) gazebo in the Guildhall.
The Santa's grotto team were supported by the Santa's sleigh group who came dressed up - Santa, Mrs Claus, Elf on the Shelf, reindeer and an elf.
Sweets supplied by local butcher Tom Samways were bagged up by the mayor and handed to each child.
"It was wonderful seeing the faces of the children," Councillor Davies told colleagues. "I cannot thank those who contributed to the tremendous success of this wonderful event enough.
"Some of the families attending probably couldn't afford to pay for their children to go and see Santa, so it was very pleasing to be able to put on a free-of-charge event.
"I'd also like to thank Tom Samways for the 150 bags of sweets he provided as well as all the schools who attended."