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Hi guys, I'm still pretty new to 40k so this might be an obvious question to most of the experienced guys.

I used to play fantasy quite a few editions ago. There was Fear and Unbreakable rules so I've always had this impression that fearless just meant immune to fear in 40k.

On reading the rules for Fearless, it says the unit passes all morale test. Since losing an assault requires a morale test, does this mean Fearless units never break from combat?

Correct - Fearless troops will never run from combat.

Thanks for the confirmation!