The Centennial Flame was first lit as the climax of the centennial celebrations of 1 January 1967 for the Canadian Confederation, in the presence of the Prime Minister, Lester B. Pearson.^[2] He was joined on the hill by leader of the Opposition and former Prime Minister, John Diefenbaker, and Secretary of State Judy LaMarsh, as well as thousands of onlookers.^[2] The Flame is fuelled by natural gas and surrounded by a fountain whose ledge contains the shields of Canada's 13 provinces and territories—Nunavut was originally absent as it was not created until 1999.^[3] On 13 December 2017, a Nunavut plaque was unveiled.^[4]

This Flame was erected as a temporary monument, but due to great public support was made permanent. In 2021 it began burning biogas,^[5][1] near the Queen's Gates (the centre gate). It is located in front of the stairs leading to the Peace Tower and Centre Block,^[5] the latter of which is home to the House of Commons and the Senate.^[2] The Centennial was celebrated across Canada in various ways, including a re-enactment of the Battle of the Thames and a building of a destroyer out of match sticks.^[2] The government also encouraged the building of a Centennial memorial in each of Canada's 10 provinces.^[5] The provincial and federal governments matched whatever the municipal government spent on their memorial, thereby encouraging the construction of grand buildings such as the National Arts Centre in Ottawa.^[2]

The monument is encompassed by a fountain into which many visitors to Parliament Hill throw coins for luck.^[3] That change is gathered, washed, dried and sorted by maintenance before it is put into a government bank account.^[3] From there the money is given to the winner of the Centennial Flame Research Award.^[6] The award, which was begun in 2005, is given "to a person with a disability to enable him or her to conduct research and prepare a report on the contributions of one or more Canadians with disabilities to the public life of Canada or the activities of Parliament."^[6] The 2011 recipient, Andrew Morrison-Gurza, received $5,500.^[7] The 2012 recipient, Andrew St. Kitts, was a Masters student with cerebral palsy who planned on using the $5,000 he received to research "attitudes of able-bodied Canadians when they see people like him."^[3]

Because of the fire that burns above the water, the fountain does not freeze, even in the middle of the winter.^[8]

The flame is often confused for an eternal flame; however, it does not burn eternally. It may sometimes be extinguished due to bad weather or for maintenance purposes.^[9][10] In 2002, for example, during the G8 protest, Prime Minister Jean Chrétien decided to have the flame extinguished and the monument covered to avoid damage. It was covered by a welded steel lid attached to concrete.^[10]