The Navy Presidential Unit Citation was established by Executive Order 9050 signed by President Franklin D. Roosevelt on February 6, 1942, and promulgated by Navy Department General Order Number 187 of February 3, 1943.

The Navy Presidential Unit Citation has been in effect since October 16, 1941.

The Navy Presidential Unit Citation is awarded in the name of the President to units of the Armed Forces of the United States and cobelligerent nations for extraordinary heroism in action against an armed enemy. The unit must have accomplished its mission under such extremely difficult and hazardous conditions to set it apart from and above other units participating in the same campaign. The degree of heroism required is the same as that which would be required for award of a Navy Cross to an individual.