The major distinction between the VFW and the American Legion is in their eligibility for membership. The VFW offers membership to all current and former military veterans who served overseas in World War II, Korea, Vietnam, Grenada, Panama, Lebanon, Persian Gulf, Iraq, Kosovo, Afghanistan or other smaller expeditionary campaigns or occupation duty.
In contrast, the American Legion invites all active military duty or honorably discharged soldiers who have served during any of the seven eligible war eras to become members. Reservists and National Guard members are also eligible for membership.
The service could have taken place here in the U.S. or overseas. The seven war eras eligible include World War I, World War II, Korea, Vietnam, Lebanon, Grenada, Operation Just Cause Panama and Persian Gulf/War on terrorism.
So, the main difference is that in the VFW you would have had to been overseas which is in keeping with its name.
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