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She was posthumously awarded the Sacrifice Medal on Monday, November 9, 2009. Sacrifice Medals are awarded to members of the Canadian Forces and those who work with them who have been wounded or killed by hostile action and to Canadian Forces members who died as a result of service.

Captain Goddard arrived in Afghanistan in January 2006, and had been serving with Princess Patricia's Canadian Light Infantry as a forward observation officer at the time of her death; her parent unit was the 1st Regiment Royal Canadian Horse Artillery. She was "known as a forceful and secure commander whose troops were extremely loyal".

Goddard was killed on May 17, 2006, during a firefight in the Panjwaye District. It was part of a joint two-day operation between Canadian and Afghan troops, to secure Kandahar's outskirts after a rumor of Taliban preparations to launch an assault on the city. As troops were moving into a mosque to capture 15 alleged Taliban members, several dozen hidden militants began firing from neighbouring houses. As a crew commander, Goddard was standing half-exposed in her LAV III, which was hit by two rocket-propelled grenades early in the battle. The battle lasted most of the day on the 17th and into the night, and ended shortly after an American B-1 Lancer dropped a 500lbs bomb. In the end, the two-day operation saw Goddard, an Afghan National Army soldier, and 40 Taliban killed, as well as approximately 20 Taliban captured, which early reports mistakenly said could have included Mullah Dadullah.

The family arranged for a public funeral at St. Barnabas Anglican Church in Calgary, held on Friday May 26, 2006.

She was also posthumously awarded the Meritorious Service Medal on Oct 27, 2006

Captain Nichola Kathleen Sarah Goddard, MSM (May 2, 1980 – May 17, 2006) was the first female Canadian combat soldier killed in combat, and the 16th Canadian soldier killed in Canadian operations in Afghanistan.