The original NZ Army Badge was adopted in 1949 from the British Army. The badge was intended to give a common identity to a reorganised, post-war, NZ Army. The only condition laid down by the British for its use was the addition of the letters NZ in gold placed under the main crown. This amendment was to differentiate between the badge of the NZ Army and that of the British Army.

On the accession to the throne of Queen Elizabeth II in 1953 the badge was redesigned. The crown on the lion and the main crown were changed from the Tudor Crown of King George VI to the St Edward's Crown adopted by the new monarch. The final version of the badge was authorised in 1954.

In 1995 it was proposed to replace one of the swords with a taiaha. This proposal featured several times in the Army News during the year and sought Army wide feedback or suggestions. This version of the badge was not officially authorised or adopted.

On 24 May 1999 the Chief of General Staff issued a Special Order of the Day authorising a change to the Army Badge that incorporated the words Ngati Tumatauenga and replacing one crossed sword with a taiaha. This change reflected the culture that existed in the NZ Army while acknowledging the historic linkage. The standard coloured master of the badge was approved by the Chief of General Staff on 7 February 2000.

On 25 September 2000 an application was made to the New Zealand Herald of Arms for a Royal Licence to be granted for the new badge. Following approval of the design by Her Majesty Queen Elizabeth II the badge was presented, in its heraldically correct configuration, to the Chief of General Staff by the Herald of Arms on 16 July 2002. The standard master, representing the original approved by the Queen, was approved by the Chief of General Staff in September 2002.

The original of the Badge is held in the Queen Elizabeth II Army Memorial Museum in Waiouru.