King's Own Scottish Borderers veterans have vowed to continue their fight to stop the regiment's merger following the collapse of a court case.
Veterans have been instrumental in the campaign
The Edinburgh branch of the Regiment's Association had lodged a petition at the city's sheriff court claiming the government was acting unlawfully.
The action was declared incompetent and was dismissed.
However, a veterans' spokesman said it had been proved there was substance to their case.
The veterans claimed the Borderers could not be merged or disbanded as it was raised by an independent Scottish Parliament.
They said that if a law was required to create a regiment, one was also needed to scrap it.
Advocate Andrew Webster, representing the Ministry of Defence (MoD), successfully claimed the action was incompetent as a sheriff court had no jurisdiction in the case.
Expenses were awarded against the veterans who could still take their case to the Court of Session.
However, retired KOSB major William Turner remained defiant.
"There clearly must be substance to the case," he said.
"It means they can't get on with it for the moment until the court case is solved one way or the other.
"If it's solved in our favour then the government has got to really think again before it gets rid of us."
The MoD plans to merge the KOSB with the Royal Scots and combine them with the Black Watch, the Argyll and Sutherland Highlanders, the Royal Highland Fusiliers and the Highlanders in a new Royal Regiment of Scotland.
The MoD and Army chiefs said the changes were needed to the structure of the infantry to ensure commitments could be met in the 21st century.