The Duke of Sussex told competitors at the games on Sunday that his wife was "resting back at home".
Meghan was scheduled to attend the Invictus cycling medal presentation with Harry earlier in the day.
On the 21st of October, Sunday, the Kensington Palace officials released a statement claiming, "the Duke and the Duchess have chose to cut back", on their schedule.
She seemed to have gotten some rest though, as later in the day she appeared with Prince Harry to attend a reception hosted by the Prime Minister, Scott Morrison.
Kensington Palace said the royal couple had moved to reduce Meghan's schedule ahead of their visit to Fiji, Tonga and New Zealand in the second phase of their tour.
"I would, as a friend, just say that I'm really excited for her", the 36-year-old told People.com.
Lifeguard Jake Nolan, who has previously met Harry on Bondi Beach, said: "He said that he'd met us before - he came by the tower".
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Yesterday, the couple were at the Opening Ceremony, in an open air auditorium in front of Sydney's famous Opera House.
The Invictus Games - an worldwide sporting event for wounded and recovering veterans and active servicepeople - will end with a closing ceremony on October 27.
He said: "Our Invictus family has turned these games into a symbol of strength, honour and optimism for a new generation".
Prince Harry poses with Australian athletes taking part in the Invictus Games as Benjamin Yeomans holds up swimming trunks for the prince.
She also talked about how she does yoga daily, and how being pregnant was "like having jet lag without actually traveling".
Prince Harry will then take a boat to Kingfisher Bay and walk along the famous jetty, no doubt meeting many members of the public along the way. Prince Harry and his wife Meghan are on day three of their 16-day tour of Australia and the South Pacific.