The names of personnel who have died since WWII are listed
The work of carving the names of 67 service personnel killed in service during 2008 is beginning at the Armed Forces Memorial in Alrewas, Staffs.
It will take a single stonemason three weeks to carve the names on the walls at the National Memorial Arboretum.
The engraving process, which began at 0600 BST, takes place every spring.
Prince William visited the memorial on Friday and became patron of an appeal which aims to raise £8m for the site.
The appeal hopes to use the money to turn the arboretum into a world-renowned centre for remembrance.
The prince said the invitation to become a patron of the project was "an immense honour".
He added: "Any memorial to those who have given their lives for others is poignant, but the vision behind this extraordinary place is something else all together.
"It is, quite simply, unique - a worthy focus for our nation's pride in those who have given their lives in the service of others. It is the most fitting way for us to express our solemn gratitude to them."
The names are cut at a rate of around three or four letters per hour, a spokesman for the Royal British Legion, which supports the arboretum, said.