Tasmanian senator Lambie said she was aware that a far right group in Britain had used the as a menacing photo, but added that is not the reason she posted it.
"I did [post] it because she is a bloody hero. What she did was extremely heoric and she should always be remembered for that."
She said despite Malalai Kakar's heroism, she stood by her call earlier in the week to ban the burqa due to national security concerns.
"I am sticking with that because I believe it is a national security issue and it is just like anything else. It is like a motorbike helmet, it is like a balaclava. I will not allow you to wear that into my office because it is a security risk.
"...It is a security risk and I think that these people should be able to show their faces and they shouldn't feel that they need to be oppressed; and I feel that is the way for the future of Australia."
Asked to explain her understanding of sharia law, she said it "obviously involves terrorism".
"Well, I think sharia law... when it comes to...to me it's obviously involves terrorism. It involves a power that is not a healthy power."
She said there was no place for followers of sharia law in Australia.
"You are either in allegiance to Australian law and show your allegiance to our constitution. But you can't have 50-50," she said.
"If you are an extremist towards Sharia law then you have no place in Australia.
"I don't have a problem with Muslims, I have a problem with extremism and sharia law...It is one law for all and that is the Australian law full stop."