Following Japan's entry into the war, the Australian government pressed for the 6th Division's return, and the 17th Brigade was subsequently brought back from the Middle East, via Ceylon where they undertook defensive duties until July 1942.

The brigade's constituent units had training depots in various locations around Victoria, including Footscray, Castlemaine, Kyneton, Bendigo, and Echuca.

The brigade consisted of four infantry battalions, and supported by a machine gun company and a light trench mortar battery.

Heavy casualties amongst Australian forces on the Western Front at Bullecourt and Messines throughout 1917 resulted in a manpower shortage amongst the five divisions of the AIF.

[5] Following the outbreak of World War II, the 17th Brigade was reformed as part of the all volunteer Second Australian Imperial Force (2nd AIF).

The 2/7th Infantry Battalion provided the division's reserve element, while the 2/6th carried out an advance to the south of the fortress to divert the defenders' attention.

[11][12] While the majority of the brigade was evacuated back to Palestine, in the confusion the 2/7th was sent to Crete while several hundred men from the 2/5th and 2/6th were also landed after their troopship, the Costa Rica, was sunk en route to Alexandria.

[14] Cremor Force assumed defensive positions around the western end of the island, with the 17th Brigade Composite Battalion located around Suda Point,[15] while the 2/7th defended Georgiopolis.

On 20 May, the Germans launched an invasion of Crete, after which there was heavy fighting on the island as the British, Greek, New Zealand, and Australian defenders fought to repel the airborne assault.

Despite inflicting heavy casualties, the Allies lost control of the airfield around Malame and were eventually pushed back towards Sfakia, from where only part of the garrison could be evacuated.

[17] After three days of rearguard fighting in the hills, plans were made to evacuate the 2/7th Battalion as the final combat unit to be withdrawn from the island, but heavy naval losses resulted in the attempt being cancelled.

Later in the campaign, the 17th Brigade's headquarters was also committed to the fighting, assuming control of the 2/3rd and 2/5th Infantry Battalions, and the 2/2nd Pioneers during the Battle of Damour, and then the advance towards Beirut.

An armistice ended the conflict in mid-July, after which the brigade was assigned to occupation duties, providing a garrison along the Turkish border around Latakia and then later around Tripoli, in Lebanon.

However, the 16th and 17th Brigades were diverted en route to Ceylon where they undertook defensive duties amidst concerns of a Japanese invasion.

The situation in New Guinea improved for the Allies as the Japanese advance towards Port Moresby along the Kokoda Track was halted following their defeat at the Battle of Milne Bay and following a reversal on Guadalcanal.

The move was delayed by bad weather and was not completed until late January, and aircraft bringing in reinforcements arrived under fire.

[23][24] In the following months, elements of the 17th Brigade took part in several actions around Mubo, Bobdubi, Lababia Ridge, Nassau Bay, and Mount Tambu.

[25] Following the capture of Salamaua, the 17th Brigade embarked from Nassau Bay and returned to Australia, concentrating at Wondecla, Queensland, where the 6th Division was reunited on the Atherton Tablelands.

The demobilisation process began shortly after the war ended, with drafts of personnel being returned to Australia based on priority.