The highest Dutch military court ruled that Dave Maat suffered severe trauma when he served in the Muslim enclave of Srebrenica, where some 8,000 men and boys were massacred by Serbs in 1995, DutchNews.nl reported Tuesday.
The court gave the country's defense minister three months to decide how much to pay Maat.
The court said the Dutch defense minister failed to provide Maat with sufficient after-care.
Dutch soldiers returning from active service in the former Yugoslavia were sent on an eight-week holiday instead of receiving appropriate care for post traumatic stress, officials said.
Maat's lawyer Geert-Jan Knoops said the ruling does not mean every soldier has the right to compensation.