A laying of memorial plaques in a Western Australian cemetery this week signifies a giant leap forward in the recognition of Indigenous men and women who died fighting for their country and were buried overseas, the state government says.

The state Indigenous Affairs Minister, Peter Collier, says families of fallen soldiers gathered at Karrakata cemetery to honour the contribution their relatives made to the history of Australian warfare and conflicts around the world.

The place of remembrance honours about 700 Indigenous soldiers from Western Australia who fought during World War One and World War Two.

Mr Collier says there's been a lack of acknowledgement for Indigenous soldiers paying the ultimate sacrifice.  

"There has been a parlous lack of recognition in terms of the role Aboriginal men and women have played in Australian conflicts, particularly over the last 120-130 years where we have been actively involved in a number of wars, especially World War One and World War Two.

"That has been a blot on our history and what we have done now is try and rectify that situation.