Ordinary Cubans were held behind police lines around the event venue, and many voiced their frustration.
The show is the latest sign in Cuba`s warming relations with the West.
Earlier this week, a US cruise ship docked in Havana after sailing from Florida - the first such crossing in more than 50 years.
Cuba and the US restored diplomatic relations last year.
`It`s a shame`
Celebrities - including actor Vin Diesel and supermodel Gisele Bundchen - attended the show at the Prado promenade to see Chanel`s leading designer Karl Lagerfeld displaying the new collection.
Lagerfeld said the line was inspired by Cuba`s "cultural richness".
But Havana residents could only watch from behind the security cordon lines as VIP guests arrived at the show in specially rented antique American sedans.
"It`s a shame they don`t let us pass," aspiring local model Reinaldo Fonseca was quoted as saying by the Associated Press news agency.
Chanel goods would cost well beyond the average Cuban wage of $25 (£17) a month, the BBC`s Will Grant says.
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