Raised in Philadelphia in mid-1864, the regiment was made up of Hundred Days Men in an effort to augment existing manpower for an all-out push to end the war within 100 days, and spent most of its service guarding Confederate prisoners of war at Camp Douglas.

The regiment was organized at Camp Cadwalader near Philadelphia on 20 July 1864, under the command of printer and Volunteer officer Colonel Harmanus Neff;[1] it had a total enrollment of 958.

A week after its organization, on 27 July, the 196th Pennsylvania was sent to Camp Bradford at Mankin's Woods near Baltimore, attached to the 3rd Separate Brigade of VIII Corps.

Company H was detached to perform provost duty at Springfield, Illinois on 26 August, and remained there until the end of its term.

The regiment helped foil an escape on the night of 27 September by firing at outside sympathizers who had mobilized to facilitate the attempt.