It was instituted by royal warrant on 20 September 1999[3] as part of the move to replace British bravery awards with an indigenous New Zealand Bravery system.

The medal, which may be awarded posthumously, is granted in recognition of "acts of exceptional bravery in situations of danger".

The medal is primarily a civilian award, but it is also awarded to members of the armed forces who perform acts of bravery in non-operational circumstances (given that the New Zealand gallantry awards may only be awarded "while involved in war and warlike operational service (including peacekeeping)".

Recipients are entitled to the postnominal letters NZBD.

[5] The medal replaced the award of the Queen's Gallantry Medal, Air Force Cross, and Air Force Medal in respect of acts of bravery in, or meriting recognition by, New Zealand.