The Duke of Cambridge, 36, commented "My wife's camouflaged against the tree", as they posed for pictures with military personnel at RAF Akrotiri.
Sqn Ldr Waghorn, 34, whose 80-year-old father David Waghorn had met the royals at their Christmas Party, said: "They said their parcel service "really was royal mail".
He also praised the sacrifices of their families, many of whom the couple had met on Tuesday, when they held a party at Kensington Palace and collected gifts to transport to the base.
William began the visit by thanking the Armed Forces deployed overseas on behalf of the nation. "It's not about credit or recognition - for you, it's just about service", he said.
"She asked whether she was sleeping through the night, and she told me that Louis is starting to wave", Davis told PEOPLE. "I'm sorry that we couldn't bring your families with us for Christmas".
"We took our children down to where the party was but everything was gone".More news: George W. Bush handed Michelle Obama something again
Over Christmas, 11,000 men and women will be deployed by the Army, Royal Navy and RAF in 35 countries, Prince William said in a brief speech.
Troops stationed at the air base will receive goody bags containing small treats like chocolate and magazine over Christmas, along with letters from cadets and parcels from military charities.
William said, "I told George this morning we were going to see the pilots today, and he said, 'If you see a helicopter, can you take a picture?'"
"When William served in the Falklands or went search and rescue, I remember how it felt".