Olivia Fox, who is Wiradjuri, led the rendition in Eora language at Sydney's Bankwest Stadium on Saturday ahead of the Wallabies' Tri Nations Test against Argentina.
The Wallabies players, who wore the First Nations jersey, joined Fox in singing the anthem in Eora language during the traditional pre-match ceremonies.
Advance Australia Fair was then performed in English.
Fox, who is a student at Newtown High School of the Performing Arts in Sydney, told Morning Report she was singing the anthem in Eora at a local rugby game when she was asked to sing at the Wallabies indigenous jersey launch. Then she got a call for the Tri Nations Test too.
"I just couldn't believe it. I've been singing this anthem with a group that I'm in - an Aboriginal vocal identification programme. So I've learnt this anthem through them and I've performed it many times.
" didn't expect it to be this big, but yeah, it's amazing.
"I did want to sing it just because I am so proud of who I am and being indigenous and proud to know the words of the Eora language. It was so surreal being out there with the Wallabies on Saturday night.
"I was just so honoured to be there, and being so young, it was such a great experience and after it, when I heard the applause, I nearly got emotional, it's just a very proud moment for me."
She said she was glad to see Rugby Australia take a step in the right direction.
The decision to sing the anthem in Eora drew widespread praise on Twitter.
Matt Giteau, who played over 100 Tests for the Wallabies, said it was a "special moment in Australian sport".
Samoa international Paul Alo-Emile, who represented Australia at the under 20 level, welcomed the move.
"How great was that!," Alo-Emile tweeted.
"Listening to the Aussie anthem being sung in the Eora language of the Gadigal people. Inspiring stuff, well done."
Syndey-based rugby journalist Jamie Pandaram said singing the anthem in a First Nations language was "a great step forward".