At an extraordinary meeting on Tuesday night, councillors agreed to award the freedom of the district to staff at the centre, which provides medical rehabilitation for injured soldiers.
District council chief executive Darren Mepham said: "The council wishes to recognise the service to the community which all the staff at Headley Court provide."
There are around 360 members of staff, both military and civilian, based at Headley Court.
They include specialist consultants, nurses, exercise rehabilitation instructors, social workers, physiotherapists and prosthetics and podiatry specialists as well as administrative support staff.
Col Jerry Tuck, commanding officer at Headley court, said: "I am delighted at the council for granting the freedom of the district to all our staff at Headley Court.
"We all acknowledge the honour that this represents and it will be a big boost to morale."
A scroll will now be bought, at a cost not expected to exceed £2,000, and a presentation will be made at the full council meeting on May 25.
A 2009 Act of parliament allows the district council to award the title of honorary freeman of the district to people of distinction and those who have given great service to the area.
The freedom of the district is honorary only and confers no legal rights.
