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This is an original sleeve patch (German: Ärmelschild) used by volunteers from the Azerbaijani Legion who served in German Wehrmacht units during World War II.
The patch is shield-shaped, printed (not embroidered) on a backing of thick, raw cotton in field gray, which is typical for mass-produced variants. In the upper part is a black bar with the inscription "ASERBAIDSCHAN". The main part of the shield features the national flag of Azerbaijan: horizontally divided into blue (top), red (middle), and green (bottom). The entire patch is surrounded by a thin black border.
The condition is very good, with only minimal fabric creasing and raw edges from being cut from a sheet, suggesting the patch was likely never sewn onto a uniform (unissued). There is no visible mechanical damage or stains.
Historically, the Azerbaijani Legion was formed in December 1941, mainly from former Soviet prisoners of war and volunteers, motivated by anti-Soviet sentiment and the desire for independence. They served in various theaters of operation, including the Eastern Front and Western Europe (as Osttruppen), where they wore these shields on the upper right sleeve of their field uniform. This version of the patch is the so-called first pattern, introduced in 1942; a second pattern, introduced in September 1943, included a crescent moon and star. Due to the limited number produced and the complex fate of the unit, these shields are now considered rare collectibles.