Lance Corporal Hans Sandoval-Pereyra was injured during a vehicle accident during the drill on Saturday near the northern Australia regional hub of Darwin.
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He was airlifted to hospital but was unable to be saved.
Thousands of marines have passed through the rotation in Darwin since 2012, in an annual arrangement between long-time defence allies Washington and Canberra.
Commanding officer for the rotation in Darwin, Colonel Russ Boyce, said the marines were saddened by the loss of Sandoval-Pereyra.
"He was a beloved member of our community and our deepest sympathies go out to his family and friends," Boyce said.
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"We are extremely grateful to our Australian partners for their valiant efforts to save this young marine's life."
A fellow marine received minor injuries during the accident but has since been released from hospital. An investigation is under way.
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