Cara Severino, 26, made contact with her parents on Saturday and was safely located by Australian consular officials in Nepal, Foreign Minister Penny Wong confirmed.
"This is a rare piece of positive news amid a disaster that has brought immense loss and uncertainty," Senator Wong said in a social media post.
In a statement, Ms Severino said she felt "blessed" to be Australian.
"I feel for the families of those still missing - I know how much my family and friends went through.
"Blessed to be from Australia and have the embassy and Australian government giving so much support."
Almost 3000 people are unaccounted for, including 41 Australians who have not made contact since a wall of mud and rock collapsed into a river near the Himalayan border with China.
AAP has spoken with family members and friends who have flown to Nepal to search of answers, and to others waiting helplessly in Australia for any word.
Jen Nai has been sharing photographs of her brother-in-law Karan Bhardwaj far and wide since the tragedy unfolded on Wednesday, praying for a miracle.
The Australian defence force member lost all contact with his family while travelling with friends Arpan Mithalal Kothari and Bhavin Raval.
The mates were near the Nepal-Tibet border with Kailash Journeys as part of a tour group when the flooding hit.
"Our family is desperately waiting for news," Ms Nai told AAP.
NSW mother-of-two Reshma Patel was also making a pilgrimage with the Isha Foundation when the floods hit.
Her last known location was an immigration office along the border, captured in viral footage.
"She was inside the big building, which you can see in all the videos that had been hit hard by the floods," family friend Chin Valsan told AAP.
Also on the tour was outdoor education leader Michael Keats, who has also been identified as missing, along with mother and wife Sumi Adhikari.
Nava Pandey has steadfastly sought information about Ms Adhikari's whereabouts since flying to Nepal in the wake of the disaster.
Speaking with AAP on Saturday, he still had no clear or official information about his wife or the other members of her group.
"Based on the CCTV footage that has emerged and their last known location in the Gyirong area, our most urgent request is for an immediate and thorough search operation in that location," Mr Pandey said.
"Families should not be left without answers during such a critical time. Every hour matters."
Among the missing are 15 Australians who were on a trek with US travel company Himalayan Glacier Adventures.
Two Australian boys, aged 11 and 14, are also part of the tour group.
Sydney doctor Manoj Dharmaratnam was invited to join the pilgrimage but chose not to.
He prescribed several of his close friends altitude medication and conducted injury assessments before they left Australia.
Included in the Himalayan Glacier group was a Sydney couple with two sons in their 20s and both studying medicine.
"They're such pioneers in the community of ours. They're very well known and well respected, so it's such a shame," Dr Dharmaratnam told AAP.Â
The last contact with the family came at 8.30 local time, when one of the sons informed his girlfriend they were checking out of their hotel in Nepal's Langtang Valley.
Rescue workers have worked around the clock since the glacier collapse on Wednesday unleashed a huge torrent of rock, ice, mud and debris.
The deluge tore through Himalayan mountain river systems as it swallowed buildings, bridges and power stations in its path.
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