The Union Jack has been up all week thanks to South Kesteven District Council, which is responsible for raising the flag.
This response has delighted the public after the council caused outrage in April for failing to fly the flag in celebration of St George's Day due to health and safety concerns.
Following criticism from members of the community, the council took action to make sure the flag could fly for the Queen's birthday on June 13 and Armed Forces Day.
Town councillors Brian Fines and Shirley Cliffe both criticised the district council's decision for not flying the flag earlier this year.
Coun Cliffe said: "I am really pleased with the outcome so far and hope to see the flag flying high tomorrow."
A district council spokesman said: "The start of the first Armed Forces Week was marked in Bourne by raising the official Armed Forces Day flag this week on Monday.
"The Armed Forces only supplied one flag to each district council to fly at their headquarters. As a gesture of goodwill we bought three extra flags for Stamford, Bourne and Market Deeping town councils so that they could celebrate the occasion."
The flag didn't fly for the patron saint's day because raising it involved climbing an 8ft ladder which rests on a plinth above a spiked gate.
Since then the district council has built a box over the spiked gate and in the long-term will look to move the cleat to the entrance, so no-one has to climb a ladder.


Aarmed Forces Day in Bourne takes place tomorrow on the Recreation Ground in Recreation Road from midday to 6pm.
The event, organised by the Bourne Armed Forces Day Committee, will celebrate the dedication and commitment of veterans and those still serving in the forces.
People attending the day are discouraged from parking in Recreation Road to allow access for emergency vehicles.
There will be parking available at AHF in Manning Road and Bourne Leisure Centre in Queen's Road along with disabled parking on the Recreation Ground.