A dog that was itself rescued from the pound is being hailed a hero after coming to the aid of an elderly woman on the New South Wales north coast.

The Kyogle woman, known only as Meg, had broken her hip after falling and was lying helpless outside her home.

Gypsy, the staffie-cattle dog cross, went to investigate and took home one of Meg's slippers.

Her owner, Roger, discovered the situation when he went to return the slipper.

"You don't give animals credit - they obviously don't think like we do - but she worked this one out, that somebody needed help and this was the only way she could tell us how, by pinching a fluffy slipper," Roger said.

Meg was rushed to hospital and had to undergo surgery.

She spent the next seven weeks recovering in hospital and it was only this week she could finally say thank you to Gypsy.

"I had some lamb shanks and I said I'd wrap them up in a big bow and when we all got together again, which we did last Friday... and Roger gave her one of the shanks, she didn't eat it, she just took off to take it home to show Marian and waited for Roger to come and away they went, and I'm in tears by that stage," Meg said.

"I suppose it was such a happiness for me to know that she found me and it was just good to see her again.

"We all hope for those sorts of things to happen but there's a lesson there, to be kind to your neighbours' dog and to treat them right and to treat your own dogs correctly."