The Military Merit Cross was established on October 22, 1849 by Emperor Franz Joseph I, based on the recommendation of Field Marshal Count Radetzky.

The first major revision of the Military Merit Cross came on January 12, 1860, when the War Decoration (Kriegsdekoration) was created.

This was a green laurel wreath (Lorbeerkranz) between the arms of the cross, which was awarded for special deeds before the enemy ("für besondere Taten vor dem Feind").

The previous Military Merit Cross, a breast decoration worn on a trifold ribbon, became the 3rd Class.

A recipient of an earlier Military Merit Cross without the War Decoration, if awarded the Military Merit Cross with the War Decoration, could wear both, and a recipient of a higher class could continue to wear the lower class.

A number of Saxon officers received the Military Merit Cross in the Austro-Prussian War.

From the earliest days of the decoration, the Austrian Emperor also reserved the right to make awards of the Military Merit Cross with Diamonds.

Most recipients were senior Austro-Hungarian generals and admirals, although a number were awarded during World War I to high-ranking allies.