A somewhat smaller, silky-coated type of australian terrier has been known since the 1800s, originating from crosses between yorkshire terrier and wirehaired black and tan terrier, the type of dog that later formed the australian terrier. According to the legend, a blue and red terrier from Tazmania was brought to Britain in the 1830s and crossed with a dandie dinmont terrier. A man named Macarthur Little bought the puppies and started a breeding program with the goal of producing blue and red dogs with silky coats. He later eimgrated to Australia and brought his dogs with him, where the breeding continued. The first silky terrier breed standard was written in 1904 and the breed was named Sydney Silky, renamed in 1959 to Australian Silky Terrier.

The silky terrier should be robust and active, and a good watchdog. It has a rectangular body with fairly deep and broad chest. The neck carried the rectangular head high and proud. The ears are small, thin and V-saped. The tail may be docked and is placwed high, without a brush. The coat is soft and silky, ort on the muzzle, ears, lower legs and paws. The head and neck should be covered in a ruff. The colour is red with blue to grey back. The puppies are born black and red and fade with age.