The role of morale as a positive psychological construct distinct from the construct of depression was examined using data from a longitudinal study of 1,685 U.S. soldiers on a peacekeeping mission to Kosovo. Structural equation modeling analyses revealed morale was best predicted by indices of engagement in meaningful work and confidence in unit functioning and leadership, whereas depression was best predicted by deployment stressors and negative events. Morale assessed during the deployment was related to perceiving benefits from deploying six months later, whereas depression was related to posttraumatic stress disorder and negative perceptions of deploying. The relationship between morale and benefits was a function of engagement in meaningful work. Discussion focuses on the importance of longitudinal research in specifying the antecedents of positive and negative outcomes of a stressful work environment.