After being discharged from the Red Army, Stepanyan was admitted into the Yerevan State University Department of Law.

In 1991 amid the escalation of the First Nagorno-Karabakh War, Stepanyan moved to Karabakh and took active role in the battles in Khojaly, Lesnoy, Krzhkan, Malybeyli, Lachin, Martakert, Askeran, Berdadzor, etc.

[2] In December 1991, the last Soviet forces withdrew from the region leaving Armenian irregulars against Azerbaijanis one on one.

[9] Azerbaijan launched Operation Goranboy in mid-June, pushing Armenian forces back from northern Karabakh.

Vardan Stepanyan was killed by a mine explosion on July 3, 1992, in Myurishen village of the Martuni Province.