The medal was first established on December 21, 1861, by authorization of Abraham Lincoln during the War of Secession, and was the first award that was without a British model. It was intended to raise the morale of Marines and was only awarded to those at the time. A Medal of Honor was awarded to "one who distinguished himself from others by bravery in action." In 1862, the medal was also introduced by the US Army, and in 1904, a separate ribbon was added to identify the branch of arms. The US Air Force also received its own ribbon, but not until 1965. The first Medal of Honor was awarded to Private Jacob Parrott on March 25, 1863, the first of a 6-man group, for the Andrews Raid on April 12, 1862. The first military action to be awarded a Medal of Honor occurred in Arizona on February 13, 1861, but it was not awarded until January 24, 1894. Colonel Bernard John Dowling Irwin had routed a superior force of Indians with only 14 men, and in the process freed 60 more comrades from captivity. In 1865, Mary Edwards Walker became the only woman to receive the Medal of Honor for her service as a medic during the First Battle of Bull Run.
The criteria for the award were tightened after the end of the First World War. Since then, the award has only been given to soldiers who showed extreme heroism that goes far beyond the normal performance of duty. This criterion is usually only considered to be fulfilled when a soldier in combat against the enemy puts the fulfilment of the mission or the safety of his comrades before the preservation of his own life ("at the risk of his life above and beyond the call of duty"). By this criterion, the medal is awarded posthumously more often than average, though not always. Since the beginning of the Second World War, around 62% of all Medals of Honor have been awarded to fallen soldiers.
Since 2003, in addition to the medal, the Medal of Honor Flag is also awarded, a flag with a sky blue background, golden border and thirteen white five-pointed stars. It is intended to symbolize the blood shed by decorated soldiers who have been killed and to further emphasize the honor of such a highest award. The first such flag was presented in 2005 to the family of Paul Ray Smith, who was killed in Iraq, along with the Medal of Honor.
On February 29, 2016, the medal was awarded to United States Navy SEALs Senior Chief Special Warfare Operator Edward Byers, Jr. for rescuing an American hostage in Afghanistan in 2012. Byers became the second Marine since the Vietnam War to receive the award, as well as the first Navy SEAL to receive the award while on active duty.