This decoration was instituted in 1901, orginally as the Conspicuous Service Cross, as a means of "recognizing meritorious or distinguished services before the enemy" by warrant officers or by subordinate officers of His Majesty's Fleet. No person could be nominated unless his name had been mentioned in dispatches.In October 1914, its name was changed to the Distinguished Service Cross and the award extended to all Naval and Marine officers below the relative rank of lieutenant-commander "for meritorious or distinguished services which may not be sufficient to warrant the appointment of such officers to the Distinguished Service Order."
In 1939 it was announced that the King had been pleased to approve that commanders and lieutenant-commanders of the Royal Navy and officers of equivalent rank should also be eligible for the award of of the Distinguished Service Cross. The recipients may use the letters DSC after their name and bars may be awarded for further acts.