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Swedish golfer Julia Engstrom has claimed a two-stroke victory in the Women's NSW Open in Dubbo.

Swedish teenager Julia Engstrom's superb five-iron shot on the final hole proved decisive as she claimed her maiden Ladies European Tour title by winning the NSW Open in Dubbo.

Engstrom, 18, stood on the tee of 72nd hole tied at 13-under with Belgium's Manon De Roey, who let slip a five-shot overnight lead with a closing three-over 75.

De Roey dropped shots at the 16th and 17th as the pressure told to relinquish the outright lead for the first time since Friday afternoon.

Engstrom hit first at the 176m, par 3 final hole and had the crowd in raptures as her ball landed 20 feet short of the hole then curled around the sloping green to roll within inches of the cup for a tap-in birdie.

It was a tough act for De Roey to follow and she promptly pulled her tee shot wide of the green then flubbed the chip to hand Engstrom a two-stroke win.

"I don't think I understand it yet," said Engstrom after her closing 68. "It's been a great week and I'm just thrilled."

She said the shot that won the tournament at the 18th made up for three previous bogeys on the same hole.

"I was like 'this time I'm not going to bogey it'. And I hit a great shot.

"I didn't even know how close it was until I saw the reaction of the crowds and it was a great finish to a great week.

"I've been close to winning a few times now and I've been waiting for it but you never know if it's going to happen or not."

Swede Camilla Lennarth was alone in third at 11-under with India's Aditi Ashok and Thai teen Atthaya Thitikul sharing fourth at 10-under.

Soo Jin Lee was the leading Australian at 4-under and tied for ninth.