The 22-year-old student – who split with her royal beau briefly last November – was a special guest as Harry received an army honor Monday.
As Davy looked on proudly, Harry, 23, was handed a campaign medal for his service in Helmand province, Afghanistan – a tour that ended prematurely in February, when his top-secret presence there was revealed by some members of the media. (He served 10 weeks of a planned four-month tour of duty.)
The blonde Zimbabwean sat with Prince William, 25, a fellow lieutenant in the Blues and Royals, to watch the ceremony led by Harry's aunt, Princess Anne, in the less-than-glamorous surroundings of his Combermere Barracks in Windsor, Berkshire. (Prince Charles was also in the crowd, along with the families of around 170 service people all being honored.)
Harry – who has been dubbed "Hero Harry" in the British press – blushed slightly as he chatted with Anne while she pinned the medal on his left lapel.
The prince and the other members of the unit then followed the band of the Blues and Royals for a march through the streets of Windsor, where they attended a church service to remember their colleagues who had fallen during the six-month campaign.
Harry, who was promoted to lieutenant (from his rank of second lieutenant) when he came home, was seen in a navy blue beret, eyes straight ahead as he marched past a several-hundred-strong crowd all clapping in appreciation.
After the hour-long service, Harry left the Holy Trinity Church with Davy at his side. Davy – in a cream-colored jacket and brown skirt – looked demure and serious as she and Harry stepped into a waiting gray Jaguar limo and headed back to the barracks for a reception with the servicepeople and their families.
Going StrongThe presence of Davy at such a formal event will be seen as significant by royal watchers. (It ranks alongside Kate Middleton's appearances at Prince William's army college graduation and at her longtime love's recent "wings" ceremony with the Royal Air Force.
On Sunday, the two women joined forces for a double-date with their polo-playing princes. Davy and Middleton, 26, cheered on their boyfriends as the men competed in the Audi polo challenge at Coworth Park, Berkshire.
The two sipped champagne during the match while Davy, who is a post-graduate student at Leeds University, appeared to have a stack of papers on her knee, as if she was brushing up on some studying.
"They appeared to be getting on really well together," says one onlooker.