The present study examined failure in an extreme setting within a military parachute training course used to better prepare individualsfor combat. A grounded theory analysis of interviews and observations led to four interdependent reasons for failure, three mediatingfactors of how failure was perceived, and eight ways of coping in how individuals handled failure. Two overarching master themes wereestablished of decision aversion where individuals tend to avoid making decisions regarding their own failure in order to minimize guiltand shame, and externalization where attribution is made primarily to causes outside the self in order to maintain a positive self-image.In a few cases, active measures were taken to overcome failure, most often by the ones with the strongest reactions of surprise and anger,somewhat counterintuitively indicating that the worst reactions bring out the most successful coping. Suggestions for further research andimplementation in extreme military training courses are discussed.