The award was established on August 5, 1944, along with the establishment of the Luftwaffe Roll of Honour, similar to the honor clasps of other branches of the armed forces.

According to the statute, the Luftwaffe Honor Clasp was awarded to officers and soldiers of the Luftwaffe for heroic actions and bravery in combat. A necessary criterion for a candidate was possession of the Iron Cross 1st Class, as this award occupied an intermediate position between the Iron Cross and the Knight's Cross.
The first award ceremony took place on December 10, 1944, and was given to Major Hans Jungwers. The exact number of recipients remains unknown; the Luftwaffe itself contributed to the confusion by including pilots who had distinguished themselves as early as August 1941 in their Roll of Honor. Some pilots who received the Luftwaffe Glory Cup before August 5, 1944, were included in this list, and some of them later also received the Luftwaffe Honor Clasp.
The Luftwaffe Honor Clasp was made from tombac sheet metal by stamping and then gold-plating. The center of the wreath featured an eagle clutching a swastika. On the reverse side of the award were four antennae for fastening. The clasp dimensions were: diameter - 24.4 mm; eagle - 18.5 mm; weight - 2.5 g.
The award was supported by a red, white, and black ribbon, matching the colors of the Iron Cross 2nd Class, 30 mm wide.
Like most of the Third Reich's highest awards, the box in which the award was presented was covered with imitation leather on the outside and lined with blue satin on the inside.
The award was worn on a ribbon threaded through the second button of the uniform. If the recipient had previously worn a clasp to the Iron Cross 2nd Class of 1939, he could wear the Luftwaffe Honor Clasp instead of this award.