A small but vocal Tibetan community cheered and sang their national song as their flag was raised outside council chambers in Katoomba last week.
Dhongdue Kyinzom, a member of the Tibetan parliament-in-exile, and Cr Kerry Brown did the honours.
It was Cr Brown who moved the motion in council last September to hold the ceremony, which marked the 60th anniversary of the Tibetan uprising against the Chinese invasion.
Dhongdue Kyinzom said it was "truly a remarkable day. I have been in Australia for 12 years and this is the first time I am able to join a ceremony like this. It's absolutely beautiful.
"It sends a message to the Tibetans across Australia and those inside Tibet that our struggle has not been forgotten.
"Tibet is occupied but it is unconquered," she said.
Local Tibetan leader, Samzin, thanked the councillors and Mountains residents for supporting the cause and promised her fellow countrymen and women would continue to fight for a free Tibet.