Kuno and his handler had been deployed to support the SBS forces during a night raid targeting al-Qaeda extremists in Afghanistan last year when they came under attack.
The forces, pinned down by grenade and machine-gun fire from an insurgent, were unable to advance.
UK:
Kuno was sent in to break the deadlock. Without hesitation, he charged through a hail of bullets while wearing night-vision goggles to tackle the gunman, wrestling him to the ground and halting his attack.
Kuno ultimately changed the course of the mission and helped the forces successfully complete it.
But during the assault, he was shot in both his hind legs and was treated by his handler and medics in the back of a helicopter as they made their way to safety.
He suffered severe injuries - including a bullet narrowly missing the main artery - and needed several life-saving operations before he could be flown back to the UK for further treatment.
Vets had to amputate part of one of his rear paws to prevent a life-threatening infection taking hold.
After returning to the UK on an RAF plane, he underwent extensive reconstructive surgery.
Just like injured soldiers, Kuno began a lengthy rehabilitation program to restore function to his nerves and muscles and is said to have particularly enjoyed his sessions on the hydrotherapy treadmill.
Within months, he was fitted with a custom-made prosthesis to replace his missing paw and an orthotic brace to help his injured limb.
Kuno, who was on his second deployment when he was injured, is the first UK military dog to be fitted with such devices, which allow him to run and jump unencumbered - giving him many more happy years in retirement.
PDSA director-general Jan McLoughlin said: “Kuno’s heroic actions undoubtedly changed the course of the mission and saved lives.
“He took on the enemy without fear or hesitation, never faltering from his duty despite being seriously injured.
“For his bravery and devotion to duty, he is a thoroughly deserving recipient of the PDSA Dickin Medal and we look forward to formally presenting his award later this year.”