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The discrimination against Armed Forces personnel in military uniform could become a criminal offence under proposals accepted by the government.
A new law was one of 40 recommendations in a study carried out by MP Quentin Davies.
He called for "making discrimination directed at those wearing military uniforms by purveyors of public or commercial services an offence," and said assault or the threat of violence against anyone in uniform should be considered an aggravated offence.
Prime minister Gordon Brown had ordered the study into ways to improve relations between the public and members of the forces.
Armed forces minister Bob Ainsworth said discussions would now take place on how a law could be implemented.
He said that although discrimination against those in the military is not widespread, it is "totally and utterly unacceptable".
The report highlighted incidents of discrimination that troops have been subjected to, including an army officer in service dress being refused admission to Harrods and RAF personnel in Peterborough receiving abuse.
