Women constitute one of the fastest rising segments of military veteran business owners. While the number of veteran women-owned businesses (VWOBs) continues to increase, however, the success of their businesses remains a concern, as only fragmented and extremely limited literature exists to provide insight into the factors that affect these businesses’ performance. Using Dynamic Capability Theory, this research examined the effect of dynamic capabilities and military experience on the performance of VWOBs and the role, if any, of military experience on the relationship between dynamic capabilities and business performance. This study provides actionable knowledge for veteran women business owners, as they now have further insight as to how their military experience and dynamic capabilities can ultimately influence the competitive advantage of their firms. Practical insights are offered to public and private entities interested in the sustainment and growth of VWOBs. This study also presents an empirical contribution to the growing body of knowledge on veteran entrepreneurship, filling in literature gaps. As a theoretical contribution, the study presents dynamic capabilities, an organizational theory, as a useful framework with which to link practical real-world issues facing veteran business owners.