Watson Returns as Australia's Newest Hero

Teen sailor Jessica Watson has completed a triumphant return to Sydney, with thousands of people on land and water giving her a hero's welcome.

After a 210-day journey of a lifetime, the 16-year-old from Queensland's Sunshine Coast has become the youngest person to sail around the world, solo, non-stop and unassisted.

Just two days shy of her 17th birthday, Watson sailed her 10-metre yacht Ella's Pink Lady up Sydney Harbour, the same spot she left from almost seven months ago.

Battling six-metre swells and a ripped main sail, the final leg of her journey took several hours longer than predicted.

She disembarked at the Opera House, made an emotional reunion with her parents, and then met the official welcome party including Rudd and NSW Premier Kristina Keneally.

Rudd told Watson she has done the nation proud. "Jess, welcome back to dry land, welcome back home to Australia. You may feel a little wobbly on your feet just now but in the eyes of all Australians you now stand tall as our newest Australian hero. At 16 years old, you are a hero for all young Australians, you are also a hero for all young Australian women, you do our nation proud. This is a great day for our country," he said.

Rudd wished Watson a happy birthday and welcomed her home with a special gift - one free driving lesson, which he thought she would "pass with flying colors."