Purpose - The purpose of this paper is to review the techniques involved in participant observation and to assess the strengths and weaknesses of the method as related to event research. Design/methodology/approach - A review of the literature examines applications of the research method and discusses the steps of the research cycle. Using the example of the Swell Sculpture Festival, participant observation is demonstrated to be a highly appropriate method to gather data on interactions and relationships through the recording of behaviour, conversation and experience in situ. Findings - Participant observation has been used to inform the development of management strategies, including management of crowd behavior, public risk and safety. Research limitations/implications - The paper suggests that methods of participant observation can be used to gain a deeper understanding of social dynamics of audiences and the affective dimensions of their behaviour. It is suggested that the method is highly appropriate to the context of event environments, where the use of surveys can interrupt the flow of the event experience for audiences, or be made impossible by the structure of the event. Practical implications - The case study demonstrates the application of the methodology by event managers to gaining a better understanding of audience behaviour and expectations. Originality/value - The methods of participant observation, as part of the broader qualitative research paradigm, are somewhat neglected by event researchers, despite their utility in other disciplines such as retail, education and tourism. This paper highlights the potential of the method for use in future studies of events and their audiences.