Dutch Defense Minister Henk Kemp stated an award ceremony would be held on Dec. 4 for the soldiers who fulfilled their duty under extremely difficult circumstances.
The Bosnian massacre committed in July 1995 was the worst ethnic genocide in Europe after World War II.
Dutch peacekeeper troops were responsible for guarding the Bosnian city of Srebrenica, which was declared a safe zone by the United Nations.
However, Serbian forces easily entered the city and killed 8,000 Muslims.
Last year, the soldiers who served in the city wrote a book named "Srebrenica Memoir" and expressed their regret at the debacle.
They noted that Bosnians were put into trucks and handed over to Serbs, and said civilians whom they had promised to guard were killed in front of their eyes.
The defense ministry's decision to award the soldiers has outraged Dutch citizens.
They sent e-mails and faxes to the government demanding it avoid such a move.
Dutch people expressed their reactions, saying: "We are attempting to award soldiers instead of apologizing to Bosnians. The Dutch government should explain why Dutch troops did not prevent the Serbs. Many Dutch soldiers are still at hospital under psychological treatment. Will it be appropriate to award these soldiers?"