Pacifist said:I noticed that army units still have a rank like normal units but I've never seen any of my army units get promoted
Q: Can army units get promoted? (regular->veteran->elite)
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As has been stated you can get a promotion all the way up to elite. One reason you may not have seen that is only one unit did all the fighting.
IOW I have an army with 1 elite knight and 3 horses. The knight does the fighting until it is dead. If it never gets much damage, it will do all the combats and of course cannot be promoted.