Order instituted in 1740 by King Frederick II of Prussia.
Order awarded as both a military and civil honour and ranked. In January 1810, during the Napoleonic wars, King Frederick William III decreed that the award could be presented only to serving military officers. In March 1813, the king added an additional distinction, a spray of gilt oak leaves attached above the cross. Award of the oak leaves originally indicated extraordinary achievement in battle, and was usually reserved for high-ranking officers.
In 1866, a special military Grand Cross class of the award was established. This grade of the award was given to those who, through their actions, caused the retreat or destruction of an army. There were only five awards of the Grand Cross.