A gold metal and enamel device 1 1/8 inches (2.86 cm) in height overall consisting of a brick red wheel with four spokes saltirewise bearing at the hub a disk composed of five wavy bars alternately blue and white, and overall extending perpendicularly slightly above and below the wheel a gold Okinawan Sai, blade to base, between the inscription on the wheel rim "SERVICE" on the left and "HONOR" on the right in gold letters.
Brick red and golden yellow (gold) are colors used for the Transportation Corps. The unit's service in the Asiatic-Pacific Theater, World War II, Ryukyus Campaign is represented by the Sai, an Okinawan weapon which when not in use is customarily located in a place of honor with hilt up and blade down; it also refers to "Honor" in the unit's motto. The disk with wavy bars, a water symbol, together with the wheel, an emblem for transportation, signifies the Battalion's water terminal mission. The wavy disk and four radiating spokes also denote the unit's original activation as a Port Battalion in Hawaii, the "Crossroads of the Pacific." Additionally, the three major elements of the device (wheel, disk and Sai), the five wavy bars, and the four spokes allude to the numerical designation (354) of the Battalion.
The distinctive unit insignia was approved on 15 March 1971.