Yes. It is not usually carried in a military color team, but it can be included on special occasions. Many veteran groups who have a color (guard) team carry it as part of their standard compliment of the American flag, the state (or specific service) flag and then the POW/MIA flag.
The norm for the military is to carry the POW/MIA flag separate as in the picture here, courtesy of www.arlingtoncemetery.net.
You will see and hear some very strong convictions on whether it is OK to march with it in a color team or not. My advice is to not march a POW/MIA flag within the team formation since none of the service honor guards ever do, to my knowledge. It is appropriate to march it on its own (like a Personal Color, a general’s flag- see the above picture) without guards as this, pictures, is the only guidance on marching with the flag.
A flag on a pole? Sure. Click here.