A CONTROVERSIAL child pageant has been cleared by Victoria's Child Safety Commissioner who found it did not sexualise children.

Last month's Northcote pageant triggered an outcry, with calls for child pageants to be banned and American child star Eden Wood withdrawing because her mother feared for her safety.

Commissioner Bernie Geary, asked by the Baillieu government to observe the event, said some children seemed overawed, but there was no unsafe or coercive practice.

''Children were often wearing heavy make-up, and dresses were of adult-like design, though I didn't get the feeling of over-sexualisation, rather adolescent awkwardness,'' he told Children's Minister Wendy Lovell.

''I found the pageant to be not of my personal taste; I saw nothing sinister, unsafe or degrading during my visit.''

He recommended vigilance about the pageants because they were based on perceptions of beauty and personal appearance.

''If events become more intense and competitive, I would be concerned about children's long-term self-worth being dependent upon how attractive they were judged to be,'' he said.

About 150 people attended the pageant with a $300 per child entrance fee.

Ms Lovell said the report backed the government's stance that it trusts parents to do the right thing for their children, while keeping a close eye on such events.

Opposition children spokeswoman Jenny Mikakos said the minister's response was disappointing, given the community concern, and pageants should be regulated.

''All the minister has committed to is 'remaining vigilant' - that's something that should be happening anyway,'' she said.