There were around 15 stalls as well as artwork displayed in the church by community based arts project Transported.
Visitors to the weekend fair also tucked into homemade refreshments in the church hall.
Vicar the Rev Ian Walters said: “It was a great time.”
Some £855 was raised from the event and the money will be used to repair uneven parts of the church floor.
“We have lots of people coming in and the floor could be a bit of a safety hazard in places,” he said.
Children at Gosberton Academy focused on a modern-day working of the nativity story, Away in a Manger by Nikki Davies, which sees the timeless story told through the eyes of a mule called Maurice.
The mule has to cope with a stream of visitors to his stable but is very happy when a baby is born there.
Reception teacher Sammi Newark said 42 children from reception and year one took part in the production, which involved them in singing and dancing as well as acting.
There were three performances, one for the whole school and the neighbouring pre-school, and two for families and friends, which were well attended. Parents played an important part too as they made all of the colourful costumes for the production.