[3][4][5] On 30 November 1987, Major General Bantu Holomisa, the Chief of the Transkei Defence Force, led a bloodless coup d'état against the Transkei government of Prime Minister Stella Sigcau, suspended the civilian constitution and refused South Africa's repeated demands for a return to civilian rule on the grounds that a civilian government would be a puppet controlled by Pretoria.

[3] The Military Rule Medal was instituted by General Holomisa to commemorate the coup d'état.

[1][6] The medal was awarded to all members of the Transkei Defence Force loyal to the military government.

[1][6] Since the Military Rule Medal was authorised for wear by one of the statutory forces which came to be part of the South African National Defence Force on 27 April 1994, it was accorded a position in the official South African order of precedence on that date.

The position of the Military Rule Medal in the order of precedence remained unchanged, as it was on 27 April 1994, when decorations and medals were belatedly instituted in April 1996 for the two former non-statutory forces, the Azanian People's Liberation Army and Umkhonto we Sizwe, and again when a new series of military orders, decorations and medals was instituted in South Africa on 27 April 2003.