The Staffordshire Regiment Museum, based in Lichfield, was awarded the money by the Heritage Lottery Fund's First World War then and now programme for the Breaking of the Hindenburg Line project.
The museum was awarded the grant thanks to National Lottery players.
The project will focus on The 137th Staffordshire Brigade on September 29 1918, when allied forces broke through the main German defensive line – the Hindenburg Line – during the Battle of the St Quentin Canal.
Germany signed the armistice to end the war 43 days later on November 11.
Danielle Crozier, Museum Curator, said, ‘We’re delighted that we’ve received this support thanks to National Lottery players. David Lloyd George called the battle the greatest chapter in our military history and The Staffords spearheaded this attack, which smashed the Hindenburg Line.
"It was a fine military victory but it’s one that’s often overlooked and we look forward to sharing this story with the public."
Staff at the museum would like to hear from any relatives who may be able to identify family members in a famous photograph, which shows Brigadier General JV Campbell addressing the victorious Staffords sat on the banks of the St Quentin Canal.
The project will enable people in Staffordshire to preserve the memories and heritage of people who lived through the First World War.
Volunteers will research clippings, photographs, war diaries and regimental archives to help them build a clear picture of what happened at the battle on September 29 and how Staffordshire men were involved.
Vanessa Harbar, Head of Heritage Lottery Fund West Midlands, said: “The impact of the First World War was far reaching, touching and shaping every corner of the UK and beyond.
"Thanks to National Lottery players, HLF has already invested more than £94 million to more than 1,900 projects – large and small - that are marking this global Centenary.
"With our small grants programme we are enabling even more communities like those involved in the ‘St Quentin Canal project’ to explore the continuing legacy of this conflict and help local people broaden their understanding of how it has shaped our modern world.”
The information gathered will be digitally recorded and hosted online for people to find out more about the achievements.
The research will be used to produce a documentary, which will be screened at the museum and a digital resource pack, which will be sent to schools so the story can be preserved and shared with young people across the area.
The Museum will be working with film-makers from the area, Inspired Film and Video to produce the documentary.
For more information, contact Danielle Crozier on 01543 434394.