The current design was commissioned in 1925, when the Nebraska legislature passed a bill stating that the flag would consist of the state seal in gold and silver on a field of blue.
The seal appeared on unofficial state banners prior to 1925, sometimes on a field of yellow.
One attempt was made by the architect of the Nebraska State Capitol, Bertram Goodhue.
The official design was first displayed at a 1926 New Year's Day celebration at the Nebraska State Capitol.
In 2017, State Senator Burke Harr proposed a task force charged with redesigning the flag, citing the fact that the flag had flown upside down at the capitol for 10 days with no one noticing.