The Multinational Force and Observers Medal was created in 1982 to recognise peacekeeping service with the Multinational Force and Observers (MFO) in the Sinai desert. New Zealand military personnel have been involved in the MFO since 25 April 1982 and that involvement continues until the present day. The Sovereign has approved the wearing of the MFO Medal by eligible New Zealand Defence Force personnel.

The MFO Medal is awarded for six months' (minimum 170 days) service.