Peta Murphy was first diagnosed with breast cancer in 2011 and it returned in 2019 just after she was sworn in as an MP.
The member for Dunkley in southeast Melbourne had to change from oral to intravenous chemotherapy.
She says she wants to use her platform in federal parliament to make life better for other people.
"You want people to understand that there is something happening but you don't want to be treated differently," she told Nine's Today Show.
"I still want to be the best advocate I can be for my community."
Prime Minister Anthony Albanese said his colleague, who was re-elected last year, was a courageous Australian and an incredible role model.
"She's also determined to overcome his health challenge by continuing to do her job, continue to work," he said.
"One of the things we have to do is talk more about the complex journey of life that individuals go through and in Peta Murphy being prepared to do that, she'll be making it easier for others.
"Peta Murphy is an inspiration for all Australians, and I've paid tribute to her courage and I wish her all of the very best."
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