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A space marine gets tithed into Deathwatch, performs above and beyond but as he finishes his tour gets blown apart and entombed in a Dreadnought - is he now stuck with Deathwatch or can he choose to return to his Chapter?

Varies by chapter and marine. Some chapters will demand he be returned and entombed within the chapter. Some will force the marine to remain as it means his vigil is not yet complete. Some marines will demand to remain for the same reason whereas some will wish to return to their chapter, lest their vigil be for naught if they can't bring their experience back home.

Dreadnought is a great honour though.

The fa t they performed to level deathwatch dreadnought them is pretty high up already. That's done the chapter honour.

Well a chapter like dark angels may be very interested in seeing them returned for example.
Varies alot but dreadnought status is very rare, so no matter if stay or leave, they bring honour.