If the Department of Defense (DoD) or the Coast Guard determined you served honorably in one period of service, you may use that honorable characterization to establish eligibility for VA benefits, even if you later received a less than honorable discharge. You earned your benefits during the period in which you served honorably. Make sure you specifically mention your period of honorable service when applying for VA benefits.
Note: The only exception is for service-connected disability compensation. You’re only eligible to earn disability compensation for disabilities you suffered during a period of honorable service. You can’t use an honorable discharge from one period of service to establish eligibility for a service-connected disability from a different period of service.