UPDATE 4.50pm: The woman has been found safe and well at Katoomba Hospital late on Thursday afternoon.
A search is underway in the Katoomba area for a 30-year-old woman reported as missing.
Sarah Wilkerson was last seen near Cascade Street, Katoomba, about 2am on Thursday, January 10.
Officers from Blue Mountains Police Area Command were notified when she failed to return home and commenced an investigation.
A search is underway in the Katoomba area to locate Ms Wilkerson, with assistance from the Operations Support Group and Police Rescue.
Police hold concerns for her welfare and believe she may still be in the Blue Mountains area.
Ms Wilkerson is described as being of Caucasian appearance, with a thin build, about 173cm tall, and blonde hair.
She was last seen wearing black pants, a black t-shirt and a bright green-coloured rain jacket. She was also carrying a large purple bag and a small yellow bag.
Anyone who sees Ms Wilkerson or has any information on her whereabouts is urged to contact Crime Stoppers: 1800 333 000 or https://nsw.crimestoppers.com.au.