The officer was due to receive the medal at a ceremony at the Incirlik Air Base in Adana, Turkey. However, when US colonel Kevin Leahy attempted to award it to him, the officer refused it on political grounds, DNA reported on Thursday.
"I don't want to offend or upset you, but I can't accept this award, it's impossible because those who are presenting it are in alliance with my enemy, the People's Protection Units [YPG]. My honor and pride don't allow me to accept it," the soldier explained, before leaving returning the medal and leaving the ceremony.
The incident comes amid increasing tension between Ankara and the US over the latter's support for the YPG in Syria.
Turkey sees the YPG as an extension of the outlawed Kurdistan Workers Party (PKK), a militant group seeking Kurdish autonomy which has waged an armed insurgency against the Turkish government since 1984. Tensions between Ankara and Turkish Kurds escalated in July 2015 when a ceasefire between Turkey and the PKK collapsed over a series of terrorist attacks, allegedly committed by PKK members.
Turkey is vehemently opposed to support for Syrian Kurds, who are pushing for an autonomous region in northern Syria which Ankara fears could become a catalyst for separatism in Turkey.
On Wednesday, Turkish Defense Minister Fikri Isik slammed the United States' plan to arm Kurdish militias fighting terrorism in Syria, saying that the move will provoke a "crisis."
"The delivery of heavy weapons to the YPG – is a crisis itself. This decision will not benefit neither the region, nor the United States, while the consequences will impact not only the region and Turkey, but the whole world and primarily the United States. Turkey does not have the strength to single-handedly change this game, but it does have forces to protect its interests," Isik told the Turkish NTV broadcaster.