Red over white, horizontal. Colors refer to the coat of arms of L nemaa. Order of Livonia and Cistercians.
Steps refer to the old castle.
Mitre refers to the rule of bishop. Sword refers to Order of Livonia and many battles. The flag and coat of arms of the vald are same as the former town. Lihula linn was municipality of L nemaa from 1991 to 1999. At 1999 municipalities of Lihula vald and Lihula linn decided to join.