The authiority has been given a Gold Award from the Defence Employer Recognition Scheme, alongside major organisations such as Microsoft, the Post Office and Greater Manchester Police.
It is the highest level of award available as part of the scheme.
The most supportive organisations are given a Gold Award if they can demonstrate that they provide ten extra paid days leave for reservists and have supportive human resources policies in plan for veterans, reserves, cadet force adult volunteers and the spouses and partners of those serving in the Armed Forces.
They also advocate the benefits of supporting those within the Armed Forces community encouraging others to sign the Armed Forces Covenant and to engage in the Employer Recognition Scheme.
Council leader Councillor Shaun Davies said: “Our support of the Armed Forces in Telford and Wrekin is well documented and something we are fiercely passionate about.
“Our work to secure the MoD Defence Fulfilment Centre protecting hundreds of jobs and creating many more was a fine example of this.
“To receive this Gold Award from the Ministry of Defence in recognition of our efforts to support our Armed Forces is truly an honour but one that I personally believe is fully deserved.
“We are delighted to be recognised in this way and would like to thank the MoD for recognising our work in supporting the selfless people who defend our country.”
Johnny Mercer, minister for defence people and veterans, said: “The breadth and diversity of the winners this year shows how business support for the Armed Forces continues to grow no matter the sector, company size or location.
“I am grateful for the positive attitude and flexible policies these organisations have adopted towards the defence community, which is testament to the fantastic contribution our serving personnel, veterans and their families can make to any organisation.
“I am delighted that so many companies are supporting our people and that, through this scheme, we can give them the public recognition they deserve.”