Miley had said earlier in the week how she was nervous about performing her Gypsy Heart show in Melbourne because boyfriend Liam Hemsworth's parents, Craig and Leonie, would be in the audience.
But she gave them a performance to remember and paid tribute to their home country, saying she was 'thrilled' and 'blessed' to be in Australia.
Miley had told Sydney radio station 2DayFM: 'I'm really nervous about it. I'm going to be right in front of them in my Can't Be Tamed outfit. Oh my God.
'I hate it when people I know are right there in front of me in the audience.'
Miley performed her first of two sell-out shows at the city's Rod Laver Arena on Thursday night.
Liam's family live on Phillip Island, about a 90-minute drive out of Melbourne.