The current Flag of Tuvalu was instated when the country became independent in 1978, after the separation from the Gilberts in 1976. Like many former and current British dependencies, the Tuvaluan flag is a light blue ensign based on the Union Flag, which is shown in the upper left canton of the flag. The previous flag (with the Gilberts) was also based on the Union Flag but with the coat of arms created by sir Arthur Grimble in 1932, the resident commissioner of the British colony.

The stars represent the 9 islands of which Tuvalu is made up; the arrangement is geographically correct when the flag is hung from the hoist down (because of the astronomical position in the sky).

In 1995 the flag was replaced with a new one which was not based on the British flag, and also represented the islands with stars. This flag, however, was not liked by the inhabitants, who felt that it was a move towards replacing the popular British monarchy with a republic. The old flag was re-instated in 1997, with some minor changes.