Abstract: Military veterans often transition into the civilian workforce after serving in a nation’s armed forces. The process of integrating this unique class into organizations is directly affected by the social exchanges and interactions in the organization. Utilizing an in-depth interviews-based qualitative study of 40 veterans across 12 different organizations, and integrating social identity theory, we use template analysis to identify a paradox existent in social exchanges with other organizational members where veterans are simultaneously stigmatized and socially aggrandized. These paradoxical experiences interact with veterans’ self-conceptualization and social identities to reinforce expectations, cause culture shock and eventual turnover. We present a model of this tension, contributing to literatures on veterans in the workforce, paradox, and social identity theory as well as offering HR perspectives on this phenomenon. (PsycInfo Database Record (c) 2023 APA, all rights reserved)