'What on earth is THAT?' Baffled onlookers say a 'black ring' UFO darted over the skies of famous hippy town for 40 MINUTES

• Kaz Woodall said she watched a black ring in the sky over Nimbin on Wednesday
• She watched it 'spinning' through a telescope for before it vanished 
• Ms Woodall posted pictures on Facebook to find an explanation
• Many comments on Ms Woodall's post believe the black ring was from a drone 

Stunned spectators have spotted an unidentified flying object over the skies of Nimbin. 

Locals in far north New South Wales town, known for its bohemian lifestyle, reported a mysterious 'black ring' hovering in the sky on Wednesday afternoon.

Kaz Woodall, who was walking her dog with a friend at the time, told the Northern Star the UFO rose from behind the mountain ridge at Nimbin showgrounds.

'We were both like, "what the f**k is that? I've never seen anything like this",' she said.

Ms Woodall said the object was spinning on its axis. She approached the caretaker at the showgrounds to take a look through his telescope.

'We were in awe, but we weren't scared, it was a positive uplifting experience,' she said.

The trio said they watched as the object rotated over the hills for forty minutes before it floated over and stopped directly above them in the sky.

Ms Woodall said the object stopped rotating while it was above the group before disappearing over the horizon.

She said she spent hours researching UFOs after her sighting and claims she found an article of a similar incident from New York.

Ms Woodall posted pictures of the black ring on a Nimbin community Facebook page looking for an explanation.

Many comments on her post claim the ring was a drone.

One user joked that aliens had peered over the town before deciding against visiting.  

'They were looking for signs of intelligent life. So they left,' they said.