Assigned to the 149th Maneuver Enhancement Brigade, the 206th Engineer Battalion was constituted in the Kentucky Army National Guard on 14 September 1985 and organized on 1 November 1985 from new and existing units. Two companies established from existing units, Bravo and Charlie, brought their campaign participation credits and previously earned military decorations with them to their new organization, with Company B having taken part in six campaigns in the European-African-Middle Eastern Theater and Company C participating in three Asiatic-Pacific Campaigns, both during World War II. Their military decorations include a French Croix de Guerre with Palm and a Belgian Fourragere for two citations in the Orders of the Day of the Belgian Army for Company B and a Meritorious Unit Commendation and Philippine Presidential Unit Citation for Company C.
As of Autumn 2023, the 206th Engineer Battalion remains an active unit in the Kentucky Army National Guard and is headquartered in Owensboro, Kentucky.
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The 206th Engineer Battalion Distinctive Unit Insignia, or unit crest, was approved on 26 September 1988. Scarlet and white, the two predominant colors used in the shield portion of the insignia, are associated with the Corps of Engineers. A rifle with attached powder horn is a representation of the Commonwealth of Kentucky and the Kentucky Army National Guard, and also is an allusion to military preparedness and accuracy. The shovel that’s crossed with the rifle is a reference to the Engineer mission, as is the image of a bridge inside a cogwheel below it: the bridge embodies the Engineer mission while highlight the ability to overcome all obstacles, while the cogwheel is an allusion to mobility and the mechanical and technical proficiency of the modern Engineer Battalion.
Thirteen teeth on the cogwheel signify the original thirteen states of the Union and the principles they embodied and that the 206th Engineer Battalion has sword to uphold and defend. PER EXCELLENTIAM LIBERTAS, the Battalion motto, is Latin for “Liberty Through Excellence.”Guidance on wear of the DUI is found in DA Pamphlet 670-1, Section 21-22, "Distinctive unit insignia" and 21–3(d) and (e), "Beret" and "Garrison Cap," respectively.