As part of The Campaign For Wool, the prince met with five Aussie designers - Josh Goot, Dion Lee, Kym Ellery, Camilla Freeman-Topper (of Camilla and Marc) and Akira Isogawa - who all showed off their wool creations.
The prince, who is a patron of The Campaign for Wool, was happy to stop and chat with the designers - as well as one of the models - at the event on Friday, which was hosted by Australian Wool Innovation.
Lee, who booked himself a place in February's prestigious International Woolmark Prize competition in London, by winning the Australian leg in July with his elegant and edgy tailored grey wool dress, was happy to show the prince his creation.
"It was a great opportunity to show my brand and the collection to Charles - it's obviously an opportunity that doesn't come around every day," Lee told AAP after the event.
"It was great to hear his feedback," Lee said.
"It was a highlight to be in a room with Prince Charles and with such esteemed members of the Australian fashion industry as well - it was a great moment."
The Campaign For Wool was launched globally on Australia Day 2010 in an effort to support struggling farmers.
The prince even took a detour to speak with her: "He said, 'I didn't realise you were real' - he thought I was a mannequin," Bisset said.
"But I said, 'the sheep isn't real'.
"He asked me about my clothes, whether they were warm and comfortable and he also asked who designed them."
Lee, who won $50,000 for the Australian prize, is now one of five global designers in the running for the $100,000 International Woolmark Prize, judged during London Fashion Week.