Morale affects the training and determination of your military. A higher score here translates directly into morale upgrades for your units. This is particularly important for psi combat. -4: -3 Morale; + modifiers halved -3: -2 Morale; + modifiers halved -2: -1 Morale; + modifiers halved -1: -1 Morale 0: Normal Morale 1: +1 Morale 2: +1 Morale (+2 on defense) 3: +2 Morale! (+3 on defense) 4: +3 Morale!!