Lismore was officially gazetted as a city on September 9, 1946, with the official coat of arms granted on January 29, 1947. The city’s civic pride grew further in the early 1950s with a visit from Queen Elizabeth II and her consort in February 1954, marking a significant milestone in Lismore’s history.

The 1960s were a time of boom development for Lismore, with the establishment of a local television station in 1962 and the licensing of an aerodrome in South Lismore in 1969, which eventually became the future Lismore Airport. A new bridge across the Wilsons River, the Ballina St. bridge, was opened in 1963 to alleviate traffic congestion at the older Fawcett Bridge.

During this period, the city faced a shift in its agricultural industry, with dairy farming in decline and many farmers transitioning to beef cattle or allowing their lands to fall into disrepair. The region's economy began to evolve, influenced by cultural movements like the 1973 Aquarius Festival in nearby Nimbin, which brought alternative lifestyles and a growing interest in environmental sustainability and the arts.

Lismore became a significant educational center with the establishment of the Lismore Teachers College in 1970, which evolved into the Southern Cross University by 1994. The area also became renowned for new agricultural ventures, such as macadamia, avocado, and stone fruit farming, which thrived in the region's rich volcanic soils and subtropical climate.

Today, as traditional agricultural and manufacturing industries have declined, Lismore's economy is buoyed by the service sector. As of the 2016 census, health care, retail trade, education, and tourism contribute significantly to the city's economy, with agriculture, forestry, and fishing, as well as manufacturing, still playing a role. Lismore continues to grow, adapting to modern challenges while preserving its rich history and natural beauty.