A man has died after a suspected drug overdose at a NSW Central Coast music festival where drugs were found in the stuffing of a barbecue chicken.

The 22-year-old Queensland man was taken to Gosford Hospital about 8pm on Saturday after attending the Lost Paradise Music Festival at Glenworth Valley, near Gosford, police said.

He died a short time later.

A man and a woman remain in hospital in a stable condition after ingesting an unknown substance and becoming sick at the festival which advertises itself as a drug-free event.

About 11,000 people attended the event which started on Friday and continues until January 1.

NSW Police Acting Superintendent Rod Peet said there has been "determination" by some people to smuggle drugs in through "sophisticated" methods.

Drugs have been secreted in false compartments within Vegemite jars and inserted into the stuffing of a barbecue chicken, he told reporters in Gosford on Sunday.

Supt Peet warned illicit drugs are manufactured with risky products in "questionable" circumstances by people with little care for the users.

More than 180 people and 97 vehicles have been searched during the festival's police drug dog operation, and three people have been charged with drug supply offences.

A 21-year-old man was charged after allegedly being found with 105 MDMA pill and a 23-year-old man was charged after allegedly being caught with 80 MDMA pills and 65 bags of cocaine.

Both men are due in Gosford Local Court on January 18.

Another 23-year-old man was allegedly found with 26 MDMA pills, and was issued with a field court attendance notice for supplying a prohibited drug.

He is due to appear in the same court on February 5.

A festival spokeswoman said the event is "strictly drug-free".

"This is a very distressing incident and our sincerest thoughts and condolences are with the family and friends of the deceased," the spokeswoman told AAP in a statement.

The 22-year-old man's death comes after three others died from suspected overdoses at music festivals in NSW earlier this year.

The NSW government announced new licensing regulations for music festivals to help combat the issue, but they won't be in place until after summer.

The Berejiklian government also proposed new laws where drug dealers could be jailed for up to 25 years if people who buy off them subsequently die from taking the drugs.

The coalition has been under pressure to introduce pill testing but on Sunday once again rejected the idea.

"The government position is quite clear on pill testing ... We oppose the use of illegal drugs at these festivals," NSW Planning Minister Anthony Roberts told reporters in Sydney.

"We appeal to you - just enjoy the festival and do it without taking drugs."

Drug law reform campaign Take Control again pleaded with the government to reconsider its position on pill testing and make music festivals safer.