Dame Marie Bashir, Governor of NSW has backed sweeping terror raids across Sydney saying they are essential to country that values security, in a rare interview.

After 13 years in office the state's second-longest-serving governor has spoken frankly to The Sun-Herald about challenges facing Australia from national security, post-traumatic stress and indigenous issues at one of her last official engagements before she retires on October 1.

Speaking on the morning of the raids, she said there would always be times of challenges. "I think this sort of vigilance is absolutely essential in any intelligent country that values its security," Governor Bashir said.

"I think Australians act in a forward way. I don't think they overreact. They know when to be vigilant and I have absolute trust in whatever means they are taking to quietly counter terrorism or its emergence in this country."

Her Excellency Professor the Honourable Dame Marie Bashir, 83, to use her full title, has no intention of putting her feet up when her term finishes. She has served three terms as governor, which has encompassed the office of six different premiers from Bob Carr to Mike Baird.

She was speaking at Rookwood Cemetery at the dedication of a commemorative plaque for the previously unmarked grave of a World War I Digger

Dame Marie, who has a background in medicine and psychiatry said one issue of concern was the great deal of untreated post-traumatic stress disorder among young veterans.

"They have witnessed the most horrendous scenes of mutilation, of death of children  and of women beaten to death," she said.

"I can understand the expression of post-traumatic stress and I have had experience with that in the past. For every single individual who has been traumatised by this sort of exposure, when they have gone to defend peace and freedom, the very least we can do is quietly help to restore them to maximum health. I am interested in lending a hand in that area."

Governor Bashir also applauded Prime Minister Tony Abbott for improving the dialogue with the indigenous community with his visit to Arnhem Land.

She said more and more Australians from the wider community had come to appreciate the great gift of "our Aboriginal people, the first Australians".

"They are very forgiving it seems to me despite the rigours of the colonial years that may not have been all that understanding of the depths and wisdom of our Aboriginal people. They are moving on all together as one people, one destiny as Sir Henry Parkes [regarded as the father of Australian federation] wanted for the whole of the continent in terms of the states coming together as a commonwealth.

"The fact that he [Mr Abbott] has gone there, that he's meeting people, he's listening to their stories, which is adding to his depth of understanding and this sets an example for others to follow."

There is also the very caring and humble side to the Governor away from the hand shaking and ceremony. She is used to being called "Aunty" by the indigenous community and also to the chants of "Good on you Gov'nor" as she walks past in the Anzac Day George Street parade.

Aide-de-Camp Flight-Lieutenant Paul Summers, who was accompanying her at the funeral, recalled once that when the Governor had tea with the Country Women's Association she asked for a tea towel to help with the drying up.

"They said: 'We don't want you to do that.' She was able to connect with the common people," he said.

Then there was the time she was being driven in her staff car in Sydney when she saw someone in the road. The driver was informed to stop and they took the individual to hospital.

"He was a young man, he was lying there. He could have been run over and killed," she said.

"I didn't want to read about it in the paper the next day and think that we had driven past. Wouldn't you do that?"

And she knows it is right to be moving on.

"The time is right, It was myself who said I would conclude my term around the anniversary of World War One. That would mean that I would not exceed the longest term of Sir Roden Cutler (32^nd Governor of NSW) for whom I had the greatest admiration and respect."

Ever the diplomat, she declined to name a preferred premier among those she has known.

One uniformed army officer attending the Digger's service suggested her replacement, General David Hurley former head of the defence force, will have big shoes to step into following Dame Marie.

"I think that he and Mrs Hurley will be superb appointments," she says. "Both will have a sense of humanity and a deep capacity to reach out to our wonderful people."

There was one last important question.

How many times has she sung the national anthem?

"All my life, Advance Australia Fair," she answers. "Tens of thousands, if not more."