It was reorganized on 16 May 1923, with the regimental headquarters organized and federally recognized at Valley City, North Dakota.

The regiment conducted annual summer training most years at Camp Gilbert C. Grafton, Devils Lake, North Dakota, from 1921–39.

For at least two years, in 1938 and 1939, the regiment also trained some 19 company-grade Organized Reserve infantry officers of the 88th Division at Camp Grafton.

Commanded by Colonel Earle Sarles, the 164th transited the South Pacific ferry route in March 1942 to New Caledonia.

[citation needed] Arriving at Guadalcanal on 13 October 1942 ahead of its brother regiments as emergency reinforcement for the 1st Marine Division, the Regiment was the first U.S. Army unit to engage in offensive action during World War II in the Battle of Guadalcanal.

Between 24 and 27 October, elements of the regiment withstood repeated assaults from Japanese battalions and inflicted some two thousand enemy casualties.

The 1st Marine Division commander, Major General Alexander Vandegrift, was so impressed by the soldiers' stand that he issued a unit commendation to the regiment for having demonstrated "an overwhelming superiority over the enemy."

[3] Until the Americal Division commander, Major General Alexander M. Patch, and other units of the division arrived, the 164th fought alongside the Marines in a series of encounters with Japanese units in the Point Cruz area, where they successfully dislodged enemy troops from two hilltop strongpoints.

Later, the 164th participated in extensive jungle patrols as well as organized offensive sweeps of the island to eliminate remaining Japanese resistance.

After the Battle of Guadalcanal, the regiment returned to Fiji with the rest of the Americal Division to refit and replenish losses.

At this point, many veteran officers and men of the 164th volunteered to join the 5307th Composite Unit, better known as Merrill's Marauders, for service in Burma.

[4] With the rest of the Americal, the Regiment later participated in the Bougainville campaign, then fought to secure the islands of Leyte, Cebu, Negros, and Bohol, in the Philippines.

[5] Corporal Kenneth S. Foubert of the 164th Infantry has been recognized as the first U.S. Army soldier to die in combat after the attack on Pearl Harbor.

A gold color metal and enamel device 1+1⁄8 inches (2.9 cm) in height overall consisting of a shield blazoned: Azure, a Spanish castle Gules door of the first and fimbriated Or between three six-pointed mullets one and two and debruised in base by a demi-sun issuing from base of the last.

That for the regiments and separate battalions of the North Dakota Army National Guard: From a wreath Or and Azure, a sheaf of three arrows Argent armed and flighted Gules behind a string bow fesswise Or with a grip of the second.