Eric Jan Overvoorde, a sniper who served as a member of the Dutch Special Forces, was decorated for previous service as a peacekeeper in Bosnia. His commanders have rejected the charges of misconduct.
The decision to prosecute has created friction between prosecutors and the Defence Ministry which oversees the Iraq mission.
Defence lawyer Geert Jan Knoops said the case could have an impact on the participation of Dutch forces in future peacekeeping missions.
"The prosecution is taking a heavy personal toll on Eric and he hopes for a just outcome," Knoops said.
