It was the monarch's own idea to give out the Elizabeth Cross, which was unveiled by the MoD yesterday.
But The Sun can reveal that the 83-year-old Queen ordered her name should be given to the award.
Senior sources said she has been so moved by the sacrifice of 348 heroes in Iraq and Afghanistan that she wanted to soften the blow for their loved ones.
Her intervention came at a meeting with Britain's top warrior, Air Chief Marshal Sir Jock Stirrup.
It is the first such move since the George Cross was instituted in 1940 by her father King George VI.
The Elizabeth Cross is also another victory for The Sun's Help for Heroes campaign to win more recognition for the Forces.
A source said: "It was Her Majesty's own idea. She told the Chief of Defence Staff she wanted to put her name to it."
The Cross, which is not officially a medal, is made of hallmarked silver and on its four corners are the rose of England, the Scottish thistle, the Irish shamrock and the Welsh daffodil.
It will be given to the next of kin of servicemen killed on major operations like Afghanistan, or on smaller missions and in terrorist attacks.
Controversially it will not be given out for deaths in training or general service in the UK.
It will be retrospective as far back as 1945 and more than 8,000 may be issued.
Yesterday the Queen made a rare personal broadcast over Forces' radio and TV station BFBS.
She said: "I hope the Elizabeth Cross will give further meaning to the nation's debt of gratitude."
Sir Jock said it was "a lasting symbol of recognition of sacrifice."