FIONA Crystal Theuerkauf, who was travelling with Ms North, said she too say a "little boy in a red shirt" on the side of the road while they were heading to Sunshine Plaza for movies and shopping.
She told the court he was "waving a stick around" with one hand and trying to wave down the bus with the other.
"He was standing on the side of the road waiting for the bus," she said.
Ms Theuerkauf said she saw the bus driver make a motion with his thumb back over his shoulder to let the boy know they were passing but there would be another bus on the way.
She said she then turned her attention back to the boy.
"I had seen a male standing some distance behind him," she said.
"I know he had long hair, a goatee, indented cheeks, he was wearing faded jeans, maybe a shirt and singlet, had a tattoo on his (upper left) arm … a black one.
"I know he had a bag on the ground on the bag next to him. Dark sunglasses.
"He was sort of (leaning) back, left leg lifted and bent, arm straight down by side. (Foot) against the back wall."
Ms Theuerkauf said she did not see any other people or vehicles nearby.
Girl recalls seeing Daniel at bus stop with a man nearby
A GIRL the same age as Daniel Morcombe has described seeing him playing with a stick a few metres from a "gaunt" man with "prominent eyebrows".
Abby Lee North, from Bli Bli, said she was on a bus from Nambour to Maroochydore but it had broken down just before the Kiel Mountain Road overpass where Daniel was waiting at an unofficial bus stop on December 7, 2003.
Ms North, then aged 13, said she remembered waiting "ages", probably an hour for another bus to come along which they transferred onto.
"I saw a little boy and a man up against the wall," she said when asked about passing under Kiel Mountain Road.
"I just remember him playing with a stick."
Ms North said the boy had a red shirt, dark hair and was her age or younger.
She said she saw the bus driver make a hand gesture and mouth words to the boy but she could not remember the movement now.
Ms North said there was a man standing up against a "dirt wall", pointing a distance estimated to be about 6m in the courtroom.
"All I can remember is a gaunt face and really prominent eyebrows," she said.
"Just leaning with one leg up and leaning back because it was on a slope."
Ms North said she did not see any interaction between the man and the boy.
She said she did not see any other cars near the overpass.
Ms North worked with a sketch artist to provide a comfit which was shown to the court.
She also looked at photoboards with a number of men, indicating images two and three "stuck out" because the facial features were similar but she could not say the faces were familiar.
Daniel Morcombe 'sitting on haunches', witness tells jury
DANIEL Morcombe was sitting "on his haunches" on an embankment under the Kiel Mountain Road overpass when a student drove past with his mother.
Jessiah Daniel Cocks, 17 at the time, told Brisbane Supreme Court he had been to the McDonalds store at Kuluin about 1.35pm and he spotted the boy in the red shirt on the way back.
He said he was in the passenger seat when they drove down the Nambour Connection Road towards his home at Mapleton.
"There was boy in a red shirt under the overpass," he said.
"He was on his haunches on the embankment.
"I'm not sure if he was climbing down the embankment or just playing, sitting there.
"He was on the north side - same side as church - traffic travelling away from Nambour.
Mr Cocks also said he recalled seeing a white four-wheel-drive "50-100m towards Nambour after the overpass".
He said he thought it was a 1990s Landcruiser with "quite rigid angles" that "may have had a black snorkel".
But Mr Cocks said his memory now appeared to be different to what was written in his statement made a decade ago.
He said he expected his memory to be better within a few days of the sighting when he made his police statement
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