The order was instituted on the initiative and guidance of President Kim Il Sung soon after the outbreak of the Fatherland Liberation War (June 25, 1950-July 27, 1953).

On June 28, Juche 39 (1950), Kim Il Sung told an official that he was going to award the Seoul unit title to those that participated in the Seoul liberation operation, adding citations also should be conferred on meritorious soldiers.

On that evening, he called an artist and gave him a task to design the order.

Next day, he examined the design, suggesting inscribing letters "For the fatherland" and a soldier with rifle in hands in the order and decorating its frame with red-color star.

He again examined the revised design the next day and approved it. He then personally named it Order of Soldier's Honor.

Thus, the order was instituted on July 1, 1950, six days after the outbreak of the war.