We examined the effects of the Holocaust on diurnal cortisol secretion in survivors and their adult offspring. Israeli female Holocaust survivors and matched comparisons formed a case-control study design with two generations: 32 Holocaust survivors and 33 comparisons, along with their offspring (total N = 144). Participants self-reported on dissociation and physical health, and their salivary cortisol levels were assessed during the day. Complete cortisol data was available for 58 and 74 first- and second-generation participants, respectively. Holocaust survivors showed higher levels of daily cortisol versus comparisons. Their offspring showed lower cortisol levels only when surviving parents displayed more dissociation.