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Does leveling up a vault dweller ever cause his stats to increase, or is leveling purely for getting caps? It seems like I only ever get caps and nothing else good. Can someone explain what all happens (health increase, more damage, anything?) when you level up a person in your vault?

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According to the in-game guide their health is based upon their level. With out actual numbers and since the dangers seem to scale along with your dwellers though, this is a bit hard to qualify from an end-user standpoint.. but that is what the guide says leveling does.

Research! I had a room with many different levels and I rushed it until I failed to get the following screen shotenter image description here

This shows the same damage being done to different level players and there is a clear difference over the length of the encounter. So level up those characters! It keeps them alive longer!

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    This is true. Without further testing we don't know specifics, but it doesn't increase their stats (at least, not in a visible way).
    – two bugs
    Commented Jun 20, 2015 at 0:17
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    @twobugs What makes me wonder about this is that I have had varying levels in the same room and when an incident happens, they appear to lose their health at nearly the same rate. If there is variance I am not seeing it as of yet.
    – James
    Commented Jun 20, 2015 at 0:34
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    I've definitely had cases where a new level 1 dweller has had their health drop quickly and he died in a radroach attack when the other 5 dwellers survived.
    – fcrick
    Commented Jun 20, 2015 at 21:33
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    Dwellers of a higher level also have a better chance of killing creatures in the wastelands.
    – msg45f
    Commented Oct 23, 2015 at 14:07
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With each level up they gain HP based on their endurance. That means a lvl 50 dweller gaining endurance will not get additional HP. this is likely a bug, but very close to the original Fallout series games.

Test details are listed here: Endurance affects HP only during leveling not (on Reddit)

TL;DR: If you want to max HP for dwellers, train a dweller to Endurance 10 at level 1 before they level, give them endurance buff gear, then level them to 50. Training endurance after they've already levelled won't give them HP, nor will giving outfits that buff endurance to your guards give them more hp after they've already levelled.

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    Great answer. Thanks for bringing this to our attention and summarizing the link to prevent link rot! +1
    – two bugs
    Commented Aug 25, 2015 at 14:06
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Whenever a dweller levels up, they will give you caps, the amount being the same as their level. This means that over time, you will get more and more caps from levelling up your dwellers.

I've not seen any other impact this has. I have one dweller who is level 40 (got him from a breadbox) and he's not noticably different (other than that he arrived with killer stats).

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I have sent dwellers at different levels out into the wasteland. The higher leveled dwellers clearly survive longer than the lower level one's. Higher leveled dwellers have more health.

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