The once war-torn former Yugoslav state declared its independence overnight, triggering celebrations in the capital Pristina, despite the lack of UN recognition and opposition from Serbia and Russia.
Mr Rudd said the Australian Government believed an independent Kosovo would be a good thing and it would give it official diplomatic recognition soon.
"We've already indicated to our diplomatic representatives around the world that this (independence) would be an appropriate course of action," he said on ABC radio today.
"The sorry history of Kosovo means we've got to do whatever we can to ensure that the citizens of that part of the world are protected into the future.
"This would appear to be the right course of action. That's why, diplomatically, we would extend recognition at the earliest opportunity."