Three parcels of land near Currarong have been passed to the Jerrinja Local Aboriginal Land Council (JLALC) after a land claim was finalised.
The Aboriginal land claim was officially recognised in 2016, taking the state government five years to finalise a survey over the 172 hectares of land.
The CEO of JLALC Alfred Wellington welcomes the finalisation of the claim near the northern headland of Jervis Bay after a 20-year fight.
"This area is one of our dreaming places so it is very significant," said Mr Wellington.
"The whole peninsula is very significant to Aboriginal people, especially the Jerrinja as custodians, and we have a long association with that land."
South Coast MP Shelley Hancock congratulated the Crown Lands Survey Team in the Department of Planning, Industry and Environment and Jerrinja Local Aboriginal Land Council on its successful land claim.
Mrs Hancock said the Nowra Crown Lands survey team used a "wide variety of cutting-edge technologies to overcome difficult and sometimes dangerous geographic challenges to accurately map the land claim's boundaries".
"The survey team tackled natural barriers including heavily vegetated terrain, 1.6 kilometres of near vertical rugged cliffs, 700 metres of creek line, 2.1 kilometres of tidal shoreline, and bushfire threats.
Minister for Water, Property and Housing Melinda Pavey said the NSW Government is committed to the Aboriginal land rights process to support economic and social outcomes for Indigenous communities.
The land has been transferred to the JLALC, which will now manage the area.