Located on the stretch leading to the Eiffel Tower, in an open area near the intersection of l'Avenue de New-York and the Place de l'Alma, the Flame of Liberty is a gold-leaf-covered sculpture of a flame, replica of the flame of the torch from The Statue of Liberty in New York, USA, which originally served as a flame of light to guide ships at sea.

The sculpture, measuring about 11.50 feet (3.5 m) in height, executed in gilded copper, and supported by a pedestal of grey-and-black marble, was installed in 1989 as a symbol of friendship between France and the USA, and was gifted to the city of Paris by the International Herald Tribune, in celebration of its 100th anniversary of publishing the daily English newspaper in the city. In addition to that, the Flame was also a token of thanks for the restoration work of The Statue of Liberty, done three years earlier, by the two French companies, Métalliers Champenois, who accomplished the bronze work, and the Gohard Studios, for covering the sculpture with the gold leaf.

The project was supervised by Jacques Graindorge, the then director of the French craft unions, who intended to install the unique sculpture of the Flame of Liberty in the Place des États-Unis, a public square, located about 1,600 feet (500 m) south of the historic Place de l'Étoile and the Arc de Triomphe de l'Étoile. However, Jacques René Chirac, the then mayor of Paris, who much later also served as the Prime Minister, and then the President of the country, opposed the idea.

Finally, after prolonged discussion and negotiation, the Flame of Liberty, with a plaque at its base, depicting the name of the symbolic sculpture, a gift to the city by the International Herald Tribune in celebration of its 100th anniversary of publishing in Paris, was installed in its current position and was inaugurated by the mayor on 10 May 1989.

Unfortunately, in the early hours of 31 August 1997, Princess Diana tragically lost her life in a car accident when her car hit a concrete pillar in the tunnel beneath the Pont de l'Alma, and after that tragic incident, the mourners transformed the Flame of Liberty into a memorial to Diana, offering flowers and notes in her memory.

Since 2019, the site has been officially named Place Diana, and the Flame of Liberty has become an unofficial memorial for Princess Diana, even many visitors of the city believe that it was built for her.