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So yesterday in a 2v2 tourney. My SM are allied to a guard unit with a bane blade. Very fluffy. So we are playing two Knights bearing down on th bane blade. I disembark 5 man tac squad with melta bomb on sarg to try knock few hull points off. Well first this marine throw a krak grenade(modeled as the thrower so obviously he threw it). Hits. And wounds! So then in the assault the sarg goes and whiffs badly. The knight cuts apart 4 then stomps twice on this last marine and he survives. Then he doesn't run! So he ties up this knight one more turn. Freeing the bane blade for more shooting before the marine dies.

While I know it's not epic or anything and lesser beings have done more. But in the fluff would this marine get a medal? Promotion? Pat on back? I want to paint something for him.

Last man standing, he'd probably get a battlefield promotion. Fluffwise though, just a standard day for a space marine. You could put a mark on his shoulder pad to remind of the achievement, like a kill mark.

He would get some nice bling for his armour.
Space Marines don't decorate their armour and equipment just because it looks nice. They are not vain like that. Every little decoration represents an award to mark some kind of achievement, so that should a Space Marine fall, his brothers will have a record of the warrior that has been lost.

If his Sergeant died in that fight he could be promoted to that, right? You need to have someone to replace that role, after all. And as for marking the armor, I expect that watching his squad die would deserve some sort of mark, to honor them, if nothing else.

Yeah, soudns like grounds for a ding on his armour to me.

"Initiate, let me tell you about the day I distracted this heretic Knight's foot for just one more moment, just long enough for my allied Baneblade to do its job..."

Considering the nature of his death I suggest full outfitting in Dreadnought armour. If no suits are available then he is to be sent to The Emperor to fight at his side in the End of Times.

Give him a Purity Seal for his valor.