A 68-year-old Falklands veteran is planning to sue the Ministry of Defence after claiming he was kicked out of the navy for being bisexual.
Joe Ousalice was cleared at a court martial in 1993 after being accused of being in bed with another sailor.
He had denied the charge, which the service said was prejudicial to good order and naval discipline.
Despite being cleared, he said he was forced to reveal his bisexuality to the court and was discharged from the Navy because he might "corrupt" others.
The Navy confiscated his military honours, including a medal and three Good Conduct badges, at the time of his dismissal.
He is taking the Ministry of Defence to court in a bid to have these returned.
In his 18-year naval career he served in the Falklands, Northern Ireland and the Middle East.
Mr Ousalice's lawyers, from human rights organisation Liberty, argue he was discharged "entirely because of his sexuality".
The group also wants other medals that were confiscated from military personnel because of their sexuality to be returned.
Mr Ousalice said he lived a "double life" while he was in the Navy, stating he was careful not to associate with other sailors whom he knew were gay.
"I was watching every day what I was saying, what I was doing," he told the BBC.
"After the court martial was completed, a guy came in with a pair of scissors and said 'Sorry, mate, I need your medal', and just cut the medal off me.
"The fact that I had been to the Middle East, to the Falklands, to Northern Ireland six times means a lot to me and that medal is proof to me that I was good enough for all those years, and yet somebody can just come and take it from you."
A Ministry of Defence spokesman said it would be "inappropriate" to comment as legal proceedings are ongoing.
"We are currently looking at how personnel discharged from service because of their sexuality, or now abolished sexual offences, can have their medals returned," he added.
Gay people were not allowed to serve in the military until a rule change in 2000.
