The Badge of Military Merit is considered to be the first official military combat badge of the United States Armed Forces. It is the second oldest United States military award in existence, the oldest of which is the Fidelity Medallion.

The Badge of Military Merit was established by General George Washington in 1782 and was intended as a military order for soldiers who displayed exceptional meritorious service in battle. The writings of General Washington quoted in part:

"The General ever desirous to cherish a virtuous ambition in his soldiers, as well as to foster and encourage every species of Military Merit, directs that whenever any singularly meritorious action is performed, the author of it shall be permitted to wear on his facings over the left breast, the figure of a heart in purple cloth or silk, edged with narrow lace or binding. Not only instances of unusual gallantry, but also of extraordinary fidelity and essential service in any way shall meet with a due reward."

The Badge of Military Merit, designed in the form of a Purple Heart, soon became known as the Order of the Purple Heart. Historical records indicate that only three people received the Badge of Military Merit during the American Revolutionary War, all of them non-commissioned officers. Those soldiers are as follows:

• Sergeant Daniel Bissell of the 2d Connecticut Regiment of the Continental Line
• Sergeant William Brown of the 5th Connecticut Regiment of the Continental Line
• Sergeant Elijah Churchill of the 2d Continental Dragoons, which was also a Connecticut Regiment

Of the three original Badges of Military Merit, the only known surviving decoration is the badge awarded to Sergeant William Brown and is in the possession of The Society of the Cincinnati, New Hampshire Branch.

After the Revolutionary War, the Badge of Military Merit fell into disuse although was never officially abolished. In 1932, the United States War Department authorized the new Purple Heart Medal for soldiers who had previously received either a Wound Chevron or the Army Wound Ribbon. At that time, it was also determined that the Purple Heart Medal would be considered the official “successor decoration” to the Badge of Military Merit.