Today, the Order of the Dannebrog is a means of honouring and rewarding the faithful servants of the modern Danish state for meritorious civil or military service, for a particular contribution to the arts, sciences or business life, or for working for Danish interests.

The collar of the Order is made of gold, with small enamelled Dannebrog crosses alternating with alternating crowned royal cyphers representing Kings Valdemar II Sejr and Christian V, the reputed and actual founders of the Order.

The ribbon of the Order is white silk moiré with red borders, the national colours of Denmark.

The Grand Cross grade can, as a special honor, be awarded 'with diamonds' (S.K.i diam., short for Storkors i diamanter).

The rank of Commander is given to colonels, ministers and other high-ranking officials as a retirement-decoration after long service.

Commander 1st class is given for admirals, generals, Supreme-court judges, ambassadors, and other governmental leaders as a retirement decoration.

The Grand Cross is most often used for admirals, generals, Supreme-court judges, ambassadors and similar as a reward for very meritorious service to Denmark.

Grand Cross with Breaststar with Diamonds[d] is most often given to high-ranking officers of the Royal Court, such as Hofmarskals.

Several prominent Nazi officials, such as Hermann Göring and Konstantin von Neurath, were awarded the Order, but it was later revoked.