The third and final national flag of the Confederate States of America was adopted by the Confederate Congress in early 1865, amid the tumult of the American Civil War. This flag was designed in response to both practical military considerations and the need for a stronger symbolic representation of the Confederate cause. Known as the 'Blood-Stained Banner,' its design merged elements of the previous two national flags while prominently displaying a small Confederate battle flag in the upper left corner, symbolizing the army's continuing effort on the battlefield. Additionally, the red and white stripes added to the visibility of the flag, allowing for better identification during conflicts.

The flag's adoption came at a critical time when the Confederate states faced mounting pressures from Union forces, and morale was at risk. As territories were lost and the war drew to a close, the flag aimed to reinforce the spirit of the Confederate citizens and military personnel, uniting them under a common identity. The decision to adapt the flag's design illustrated the South's desire to maintain a sense of pride and legacy, even as the Confederacy approached its collapse. The symbolism embedded in the new national flag also expressed a hope that their values and principles could endure beyond the immediate crisis.

While the flag would see limited use due to the rapid decline of the Confederacy following its adoption, it remains a notable point in the historical narrative of the Civil War. The design choices reflected contemporary societal values and attitudes, showcasing the South's persistence in maintaining its cultural identity against external pressures. The flag's historical legacy continued long after the war ended, becoming a subject of debate and discussion concerning its associations with various aspects of Southern heritage.