It was requested by the Office of the Assistant Secretary of Defense (Force Management Policy) (OASD-RMP) on 2 March 1995, that The Institute of Heraldry design a medal and ribbon design for an Armed Forces Service Medal. This medal was intended to be awarded to military personal who had taken part in military operations of significant numbers that had no foreign armed opposition or forthcoming threat of antagonistic action, in operations in an area to be determined by the Department of Defense. The medal was proposed to meet a void in the criteria between the Armed Forces Expeditionary Medal and the Humanitarian Service Medal.
The Armed Forces Service Medal was established by Executive Order 12985 signed by President William J. Clinton on 11 January 1996.