A light blue flag with gold fringe bearing thirteen white stars in a configuration as on the Medal of Honor ribbon.

The light blue color and white stars are adapted from the Medal of Honor ribbon. The flag commemorates the sacrifice and blood shed for our freedoms and gives emphasis to the Medal of Honor being the highest award for valor by an individual serving in the Armed Forces of the United States.

Public Law 107-248, Section 8143, legislated the creation of a Medal of Honor Flag for presentation to each person to whom a Medal of Honor is awarded after the date of the enactment, October 23, 2002. A panel of eight members made of representatives from each Service (Army, Navy, Marine Corps, Air Force and Coast Guard), one Office of Secretary Defense staff, one historian and one representative from the Medal of Honor Society was formed to review and evaluate all designs submitted and make a final recommendation to the Principal Deputy to the Under Secretary of Defense for Personnel and Readiness. On 15 December 2004, the design submitted by Ms. Sarah LeClerc, Illustrator at The Institute of Heraldry was approved.

Public Law 109-364, Section 555, titled Authority for Presentation of Medal of Honor Flag to Living Medal of Honor Recipients and to Living Primary Next-of-Kin of Deceased Medal of Honor Recipients, dated October 17, 2006, established authority to award the Medal of Honor Flag, upon written request therefor, to the primary next of kin, as determined under regulations or procedures prescribed by the Secretary of Defense, of deceased Medal of Honor Recipients.