The service and sacrifice of Australia's explosive detection dogs and their handlers has been recognised in a ceremony at the Australian War Memorial in Canberra.

A new sculpture commemorating their service was also unveiled on the memorial's grounds.

Dogs have been used for decades by Australia's armed forces, taking advantage of the animals' strong sense of smell to detect explosives.

Several have been killed in the line of duty, and they were used extensively during troop deployments in Afghanistan.

"One of the biggest threats in Afghanistan was improvised explosive devices (IEDs), so our dogs have been critical in going ahead of our forces and clearing the way, searching the ground," Major Kendall Crocker said.

"There are many, many Australian men and women who have served in our armed forces who came home safe to their families because of the work that these dogs have done."

Major Crocker, who is the only veterinarian employed full time by the Defence Force, said dogs form bonds with their handlers, which allows the two to work as a team on the ground.

"You could say that they're the only animals that work with people rather than for people," he said.

"We really treat our dogs like a four-legged digger."

The dogs also provide a sense of normalcy for troops deployed away from home.

"It gives them that contact back to home, that sort of break from the reality of where they are, where they can just zone out and have a pat with a dog," said dog handler Lance Corporal Shane Kerswall.

Dog handling a growing area within Defence Force

Lance Corporal Kerswall said the profession had grown within the Defence Force in recent years, and that both handlers and dogs were gaining more recognition.

"There is a very strong recognition of the special role, it's always developing," he said.

"There's now more opportunity for rank progression amongst the trade."

Sapper Andrew Nordling with his five-year-old explosive detection dog Domino. ( ABC News: Adrienne Francis )

While the job is undoubtedly dangerous, Major Kendall said the utmost care was taken to protect the dogs in war zones, and only three had been killed in the line of duty since 2007.

"The overall level of loss with dogs is really [not very different] to perhaps the same number of dogs back here in Australia," he said.

"We take every care to make sure that they're looked after, their health is looked after and their safety is looked after."

However as with any military role, explosive detection dogs and their handlers are not immune to the tragic reality of working in a war zone.

In June 2010 Sapper Darren Smith and his collie-cross Herbie were killed in an IED explosion in Afghanistan.

Their names are etched onto the unveiled sculpture.

"He was a very good bloke, easy to have a chat with and a quiet beer," Lance Corporal Kerswall said.

"They were doing a job that they believed in, and that they loved, and I hope that one day I embody what they went out there and did," Sapper Andrew Nordling said.

Sapper Nordling and his dog Domino are yet to be deployed, but are "pretty excited" about the prospect.

"He's pretty good, we actually train our dogs to a pretty high standard ... I'm obviously biased, but I think he's one of the best," he said.