On 19 July 1932, the Secretary of War approved the conversion of the Citation Star and Navy Commendation Star to the SSM with the original silver star incorporated into the center of the new decoration.The Silver Star Medal was authorized by Congress for the U.S. Navy on 7 August 1942 for presentation to personnel for gallantry in action not warranting the award of a Medal of Honor or Navy Cross.

The Silver Star Medal remained exclusively an Army decoration until August 7, 1942, nearly a year after World War II began. On that date, the Silver Star Medal was expanded by an Act of Congress for award by the Navy Department for actions on or after December 7, 1941, (Public Law 702, 77th Congress).