Adorable Dachshunds, authentic German beer and food, and more than 70 market stalls are all part of arguably Mt Beauty's biggest annual event of the year this Saturday.

The return of the popular Dachshund Derby and Oktoberfest at Mountain Monk Brewers, coupled with Mt Beauty Community Market in the adjoining Hydro Park, will provide plenty for locals and visitors alike to enjoy.

"It's shaping up to be a fantastic day," said Mountain Monk Brewers proprietor Stephanie Bellman.

"We had more than 700 people last year and this will be as big, if not bigger...which is great for the community, our town, local businesses and the economy.

"We expect around a 50/50 split of locals and visitors, with many of the tourists making a weekend of it...we already know there are bookings at more than 18 different accommodation provides in the area."

There is free entry to Mountain Monk Brewery to enjoy the festivities, from 11am to around 8pm, with live music, German craft beers including Bavarian Pilsner and Dunkelbock brewed especially for the event, German-inspired food, a stein-holding competition and free children’s entertainment such as face painting and creative activities.

Ms Bellman said up to 80 dachshunds from across Australia are expected to race in 10 heats, with many more to watch on, while Valerie - the North East dachshund who survived for 15 months in the bush on Kangaroo Island - will again be this year's guest of honour.

"There will be a longer racetrack this year including improved security, additional seating, reserved seating and viewing areas and dog activities will include fashions in the field, doggie couture, and special dog menus," she said.

"We'll have market stalls with food and doggie items, while the Mt Beauty Community Market next door will have many more stalls with their usual outstanding wide range of offerings.

"It will be a great family day and visitors are encouraged to bring along camp chairs and picnic blankets."

Ms Bellman said the day hopes to raise $5000 for Dachshund Rescue Australia, with more than $2500 raised so far.