Unemployment was a major problem faced by the ex-servicemen in Malaysia since the early seventies. Recognising the needs of ex-servicemen, the government through the organisation of the Veterans Affairs Division (VAD) introduced the resettlement program for the ex-servicemen with the aim of assisting the veterans to find employment. However despite the implementation of training programs, the rate of unemployment among the ex-servicemen was relatively very high, whilst the extent of the as well as the underlying factors remained unknown, with the resultant ambiguity of the role of VAD. This case study was designed to investigate issues related to the employment situation of the ex-servicemen by surveying those in the capital territory of Kuala Lumpur and the states of Selangor, Negeri Sembilan and Melaka, who participated in resettlement training and were discharged in 1993. In addition the states of Johor, Perak and Penang were included for the survey on the non participants of resettlement training. The study found that the rate of employment of the ex-servicemen in the states surveyed was substantially lower than that of the national average. The study also found that participation in the resettlement training organised by the VAD had significant effect on increasing the rate of employment besides higher income, shorter period of unemployment, better readjustment and higher satisfaction with civilian life. Among the factors analysed, ability to speak English and the economic activity and the stage of development of the states were found to have significance influence on the rate of employment. Other factors found to be associated with the employment of the ex-servicemen included age, education level, rank, urban or rural background, and matching of training to application. Based on the findings of this case study recommendations were made to improve the selectivity of, and access to, resettlement training by all ex-servicemen. Other recommendations included improving the standard of education and spoken English before discharge, lowering age of discharge with pension, provision of information related to employment and counselling service, setting up of data bank of ex-servicemen and further research.