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Less than a year ago Rachael was a struggling art student who could barely afford the trip home to her native, Glasgow. But now, things have changed for her.
Gaga wore Barrett's creation in the video for last November's number one hit – Bad Romance and for Telephone. The designer dress was priced at 1,000 pounds.
A Barrett dress also features in Lady Gaga's current Monster Ball world tour, and the singer appeared on The Ellen DeGeneres Show in another Barrett design.
"Rachael is my favourite new designer. Her innovation with latex, silhouette and minimalism is refreshing, inspirational and promising for the future of fashion," said Gaga.
"It was absolutely wonderful when I discovered Lady Gaga would be wearing one of my dresses for the Bad Romance video. After graduating it was pretty rough, I had a tough summer hunting for freelance work, so for this to happen was a real surprise," said Barrett.
Rachael Barrett was also voted to be the "breakthrough designer of the year" at last November's Scottish Style Awards.