As the Northern Territory never had colonial status or a prior flag, it was decided that an original design would be created.

The flag was designed by Robert Ingpen, a prominent artist originally from Drysdale, Victoria.

The flag of the Australian Capital Territory adopted 15 years later is similar in design.

The Southern Cross appears as five white stars on a black panel at the hoist.

In the fly of the flag is a stylised Sturt's Desert Rose, the territory's floral emblem since 1961, with seven white petals and a black seven-pointed core.