Military service is mandatory in Israel, and 1971 Milstein joined with the Israeli Defense Forces. He ended up serving during the time of the Yom Kippur War in 1973. After his military career had ended he went to the University of Technion and graduated with a Bachelor of Science degree in business and economics.
1974 was a big year for Milstein. He married, and two years later the first of his two daughters was born. His second daughter was born in 1980. In 1981 Milstein and his family decided to move to the United States.