Since 1949, the Armed Forces Flag Day is being observed on December 7 throughout the country. To honor the martyrs and the men in uniform who fought on borders to safeguard the country's honor, the Armed Forces Flag Day is observed.

During wars on different occasions the country fought and combating the ongoing cross-border terrorism and insurgency, the Armed Forces lost and continue to lose valuable lives as well as leaving quite a few disabled.

Many brave and gallant heroes from the Armed forces have laid down their lives in the service of the country. Ongoing counter-insurgency operations have also left many broken homes without a breadwinner.

On the Armed Forces Flag Day, the services rendered by personnel of Army, Navy and Air Force are remembered. It is the collective duty of every citizen of our country to ensure rehabilitation and welfare of the dependents of brave martyrs and disabled personnel. The Flag Day gives an opportunity to contribute most generously to the Armed Forces Flag Day Fund.

The Armed Forces formations and units also arrange variety shows, carnivals, dramas and other entertainment programmes. Token Flags and car stickers in red, deep blue and light colours, representing the three Services are distributed to the public throughout the country by the Kendriya Sainik Board.

The Kendriya Sainik Board is responsible for administration of AFFDF.

The welfare schemes are funded from Armed Forces Flag Day Fund (AFFDF) which was instituted vied Gazette of India notification No 5(1) /92/US(WE)/D (Res) dated 13 Apr 1993, by amalgamation of the following into one fund named as "Armed Forces Flag Day Fund".