The medals were stolen from an address in Armagh sometime in the past 12 months.
The victim only realised they were missing when he went to retrieve them to wear on Remembrance Sunday.
Police worked with local medal and military collectors and identified the stolen medals as having been sold at auction in November 2018 and sold on to a collector this month.
A PSNI spokesperson said that the medals appeared for sale on Ebay on December 13, and after contact was made with the seller they were happy to reunite the medals with their owner.
Writing on the 'PSNI Craigavon' Facebook page the spokesperson confirmed that the medals had now been returned.