The Independent Police Conduct Authority has cleared officers of any wrongdoing when they shot and killed a Tauranga man a year ago.
The man was holed up for 15 hours in November last year, holding two young girls hostage with a machete.
Police shot him dead after negotiations failed and he was found holding a knife to his daughter's chest.
The authority found the man posed a lethal and imminent threat to his daughter, so the shooting was justified.
But it said a family liaison officer would have helped both police and the victim's family at the scene.
"It was the responsibility of the Incident Controller to look beyond negotiating tactics to a contingency plan to protect the wellbeing of the children until they were released or rescued," Authority chair Judge Colin Doherty said.
"This included fully exploring all options to provide the reasonable necessities of life such as food and water.
"We accept that the immediate and serious threat that [the victim] posed to his daughter when officers entered the bedroom justified the decision to shoot him."
Police have accepted the findings and back the decisions they made at the time.
"This was an incredibly difficult situation for all those involved and officers did everything they could to resolve this situation peacefully under extremely stressful circumstances," Bay of Plenty District Commander Superintendent Andy McGregor said.
He said officers want to keep everyone involved safe in any incident, and the outcome is an absolute tragedy.
"At all times the priority of Police was ensuring the safety of the two children who were at real risk of harm."
The Authority said the incident happened on a very hot day.
By early afternoon medical experts advised police about potentially deadly effects of the heat on the two young children, who were in an upstairs room with no ventilation.
As far as the police knew, the children were not being given food or water, despite efforts from police to get this to them.
Superintendent McGregor said he's confident every decision made along the way was made to protect the children.
"Our thoughts remain with the family and loved ones of the deceased, the children involved and the Police staff who were faced with a very challenging situation."