This space shuttle Discovery flag was developed by NASA’s Space Flight Awareness program. When that orbiter was flying a mission, a flag like this one would fly at the Kennedy Space Center. Similar ones existed for each of the orbiters.
This flag belonged to Dennis Jenkins, a consulting aerospace engineer for the Space Shuttle Program, and author of Space Shuttle: The History of the National Space Transportation System, a definitive book detailing the development and first 100 flights, of the space shuttles.
Over the course of the 135 Space Shuttle Program missions, thousands of workers were employed in the development and maintenance of the space shuttle orbiters. The Space Flight Awareness Program sought to ensure that every employee knew the importance of their contributions to the safety and success of human space flight.
Jenkins donated the flag to the Museum in September 2011.
This object is not on display at the National Air and Space Museum. It is either on loan or in storage.