DAMI Im is officially Australia's most successful Eurovision entrant, finishing second to winning country Ukraine.

It's Australia's best result after finishing fifth last year with wild card entrant Guy Sebastian.

Singer Jamala won with her emotional song 1944, meaning Ukraine will host next year's competition.

Australia was the jury favourite with 320 points, receiving the maximum 12 points from eight countries including host country Sweden.

The song contest has a new voting tally system this year, with the winner determined by a combination of national jury votes and viewer votes.

The result went down to the wire with the tele-vote shaking up the leader board.

Im told Eurovision co-host and last year's winner Mans Zimerlow that if she  won she would celebrate by having "a lemonade with my crew".

It's likely she'll still do that in Stockholm today with a second-place finish solidifying our popularity in the annual TV event watched by more than 200 million viewers.