The site of the Myall Creek Aboriginal massacre 170 years ago has been made a national heritage site.

About 100 people attended the site of the massacre west of Inverall in western New South Wales to remember the 28 Aboriginal men, women and children who were slaughtered in 1838.

Seven men were convicted for the killings and hanged.

Federal Heritage Minister Peter Garrett has announced the site will be included in the national heritage list and protected under Commonwealth law.

He says recognition of the Myall Creek massacre at this site is also a big step in the healing process with the local Aboriginal community and those descendants of those settlers hanged for their acts.

"The events at Myall Creek resonate across the years and the listing of the Myall Creek Massacre and Memorial Site formally recognises a pivotal moment in Australia's history," Mr Garrett said.

"The conflict of 170 years ago has given way to a new understanding of Aboriginal peoples's attachment to the land.

"Recognition of this attachment and the sometimes brutal ways in which Aboriginal people were dispossessed are important in the journey of reconciliation."

Large numbers of young people took part in today's service, something that has been welcomed by Aboriginal activist and elder Lyall Munro.

"You have hundreds of children - high school kiddies may make this country a better place in the future for reconciliation," he said.

New South Wales Aboriginal Affairs Minister Paul Lynch also took part in today's observances.