Established in 1964, the medal was awarded to South Vietnamese military commanders by the Chief of the Joint General Staff, Republic of Vietnam Military Forces.

The Loyalty Medal was awarded to South Vietnamese military commanders who had shown excellent leadership in "combat, operations, training, troop discipline, and morale".

It was awarded for commander at the Armed Forces, Corps, Division, Brigade, Regiment, Battalion, and Company levels.

The medal hangs from a white ribbon with green edges and a red center stripe.

The class of award is shown by a ribbon attachment that is similar in appearance to the military map symbol of the unit level the recipient commanded.