The blue and gold state banner was adopted by the 1917 General Assembly as part of the commemoration of the state's 1916 Centennial celebration, after a competition sponsored by the Daughters of the American Revolution. The winning design was by Paul Hadley of Mooresville, Indiana. The name was changed to flag by the 1955 General Assembly. The dimensions were changed to standard usage.
The torch stands for liberty and enlightenment; the rays represent their far-reaching influence. The thirteen stars in a circle represent the original thirteen states; the five stars in the circle represent the next five states; the large star is Indiana, the nineteenth state.
The state flag is always displayed on the observer's right of the American flag.