She was one of four women travelling north in a Subaru Impreza which crossed the centre line and collided with a Toyota Celica heading south about 1.30pm.
The woman had a suspected fractured arm and was flown to Dunedin Hospital.
The three other occupants of the Subaru suffered shock and minor abrasions from seat belts.
The male driver of the Celica was uninjured.
The Celica caught the right rear end of the Subaru, before veering off the left of the road, colliding with a bank and stopping about 50m from the impact.
State Highway 1 was blocked for about 90 minutes.
A detour was available along Mile Flat, Finchs and Easons Rds, but traffic was delayed initially, when two vehicles got stuck in Big Kuri Creek.