The deal was signed after Defence Minister Arun Jaitley held extensive talks with his Fijian counterpart Ratu Inoke Kubuabola during which they also agreed to deepen cooperation in maritime security sphere.
"The two ministers also discussed expanded defence partnership in maritime security between both the countries, and naval cooperation was identified as an area of promise," the defence ministry said.
It said the MoU on defence cooperation envisages several areas of cooperation including in defence industry, military training and humanitarian assistance and disaster management.
Earlier, the visiting minister laid a wreath at the Amar Jawan Jyoti.
Earlier in the day, Kubuabola visited the Western Naval Command in Mumbai.