US President Barack Obama has honoured the role of US military men and women in his White House address to celebrate July 4.

Flanked by his wife Michelle Obama the president said: "All the men and women who stand with us here this afternoon are an example of this generation of heroes, this 9/11 generation that has earned its place in history alongside the greatest generations.

"Happy Fourth of July everybody. Enjoy the fireworks, get some hot dogs."

Obama hosted a picnic and concert for service members and their families at the White House, with the South Lawn decked out in red, white and blue bunting and paper lanterns.