Verina Wihongi was presented with her pin, No 972, by Clutha Mayor Juno Hayes at a ceremony which held by the Clutha District Council.
Wihongi was eliminated in the first round of her event in the Greek capital five years ago, but said the thrill of competing at Olympic level would never be forgotten.
The Stirling sharemilker confirmed that she had no plans to return to serious competition, and said she had been taking a break from the sport in recent years to raise her young family.
However, Wihongi said she wanted to pass on her knowledge of taekwondo through coaching.
She told yesterday's gathering she was quite shy and would have preferred to have received her pin "in the post".
But Mayor Juno Hayes said Wihongi deserved public recognition for her outstanding achievements.
Last month, the New Zealand Olympic Committee awarded pins to the 1111 Olympians who have represented New Zealand since the modern Olympic Games began in 1896.