The unit traces its lineage back to the 1st Field Hospital, which was raised in the 1960s for service as part of Australia's contribution to the Vietnam War.

Since then, the unit has changed names twice and personnel have been deployed on numerous peacekeeping and warlike operations throughout Africa, the Middle East and the Asia-Pacific region.

When the unit was first formed as a field hospital during the Vietnam War, it was organised as a "Level 3" (now described as "Role 3") health facility, tasked with provision of initial wound surgery (surgical resuscitation) for combat casualties and medium to high intensity nursing care in the area of operations, as well as a definitive diagnosis of the casualty's condition.

This entails forward positioning of assets within a battlespace to provide a number of close health effects, "including collection from [point of injury], resuscitation, stabilisation and evacuation, and emergency diagnostics".

The current design of the bat logo was the result of a competition organised by the Commanding Officer of the 1st Field Hospital, then Lieutenant Colonel (later Major General) David Rossi, during 1977–1979.

The criteria stipulated for the design was that it should be easily identified by the unit, involve the use of the Call Sign Vampire and represent a distinguishable piece of history from which to build upon.

[8] At the logistics base at Vung Tau, a restricted Field Ambulance was set up comprising half a stretcher bearer company and a 50-bed hospital.

The modern weapons used during the Vietnam War were producing severe, multiple contaminated wounds with massive tissue damage, much greater than had ever been experienced by Australian Army clinicians.

It was located in two areas with the main hospital element at the Vung Tau base and a detached forward company at Nui Dat.

There was only one fatality during this period, but most severely injured soldiers with poor prognosis were treated at 36 Evacuation Hospital, the major United States medical facility in Vung Tau.

[3] The high standard of para-medical services provided by 1 Aust FD Hosp was such that nearly 99% on patients who reached the hospital alive survived their injury or illness.

The use of medical evacuation ("Dustoff") helicopters enabled a soldier to be receive emergency treatment at the hospital within thirty minutes of being wounded or injured in the field.

[5] Australia's combat role in Vietnam ended on 7 November 1971 with the withdrawal of most of the 4th Battalion, Royal Australian Regiment (4RAR) from Nui Dat.

[5] Meanwhile, the 8th Field Ambulance had reopened at Vung Tau on 20 November to support the residual Australian force that remained there, until it too was withdrawn to Australia in late February 1972.

[12] 1 FD Hosp health service personnel were deployed to the then South West Africa in April 1989 until March 1990 as part of the Australian contingent of the United Nations Transition Assistance Group (UNTAG).

UNTAG was deployed as a United Nations peacekeeping force to monitor the peace process, and ensure free and fair elections leading to Namibia's independence, and the ending of South Africa's occupation.

[16] USNS Comfort was also called upon on 25 February 1991 when a SCUD missile attack from Iraq destroyed a US Army barracks in Dharan, Saudi Arabia, killing 28 soldiers and wounding another 110.

[16] In the years since the Gulf War, ADF medical personnel have been deployed on numerous peacekeeping operations throughout the Middle East, Africa, and the Asia-Pacific region.

[18] The goal of this mission was to defend approximately 4 million Kurdish people fleeing their homes in the aftermath of the Gulf War and supply them with humanitarian aid.

[19] The battalion has also provided contingents of personnel on rotation to Australia's contributions to operational missions including those in Iraq and Afghanistan.