Adopted in 1968 as a result of a territory-wide competition sponsored by the Whitehorse branch of the Royal Canadian Legion as part of Canada's Centennial celebrations in 1967. Of the 137 design submissions, this design, one of ten submitted by Yukoner Lynn Lambert, was selected by the judges as the best representation of the Yukon Territory.

Consisting of 3 vertical panels of green, white and blue, the colours represent: green - the forests; blue - the rivers and lakes; white - the snow. Centred on the white panel and supported by a frame of fireweed (the official flower of Yukon) is the Coat of Arms. Topping the Shield is the Cross of St. George, representing early English explorers of the territory. Centred on the cross is a 'roundel in vair', representing the importance of fur trade in early Yukon history. The wavy white and blue lines beneath the cross represent the Yukon River as well as the many creeks and streams in which gold can be found. The red spires represent the mountains while the accompanying gold circles represent the mineral resources. The Malamute (Husky) standing atop a mound of snow represents the importance of the animal as a link to survival in the hostile wilderness of the Yukon.