The Queensland senator posted a video to social media of herself operating the drone from the balcony of a hotel on Wednesday.
The footage shows Ms Hanson laughing while flying the drone up and down between high-rise buildings.
“As long as I keep it under 400 feet, I’m right,” she says in the video.
But Ms Hanson's use of the drone prompted a number of complaints to the Civil Aviation Safety Authority (CASA), which is now looking into the flight.
“We’re reviewing the video and will take appropriate action,” CASA said in a statement to Facebook.
According to the CASA website, drone users must not fly closer than 30 metres to vehicles, boats, buildings or people.
Fines for breaches range from $900 to $9000.
Ms Hanson is not under formal investigation, but CASA staff have made contact with her team to arrange a meeting, The Sydney Morning Herald reported.
Ms Hanson took a swipe at media reporting of the incident on Twitter on Thursday afternoon.
"Mainstream media LOVE DRONE but don't seem to care about freezing pensioners, dying businesses or horror electricity costs,” she wrote.