Aim To examine self‐rated health (SRH) and its association with social participation, along with physical and mental health indicators, among USA male veterans and non‐veterans aged ≥65 years. Methods The two waves of the National Health and Aging Trend Study provided data (n = 2845 at wave 1; n = 2235 at wave 2). Multilevel mixed effects generalized linear models were fit to test the hypotheses. Results Despite their older age, veterans did not differ from non‐veterans in their physical, mental and cognitive health, and they had better SRH. However, black and Hispanic veterans had lower SRH than non‐Hispanic white veterans. Formal group activities and outings for enjoyment were positively associated with better SRH for veterans, non‐veterans and all veteran cohorts. Conclusions Aging veterans, especially black and Hispanic veterans, require programs and services that will help increase their social connectedness. Geriatr Gerontol Int 2016; 16: 920–927.