Due to heavy casualties amongst the AIF and a decrease in the number of replacements arriving from Australia in 1918, the battalion was disbanded before the war ended in order to reinforce other units in France.

The 36th Battalion was raised at Broadmeadow Camp, in Newcastle, New South Wales, in February 1916 as part of an expansion of the First Australian Imperial Force, which occurred after the Gallipoli Campaign.

Arriving in early July 1916, the battalion spent the next four months in training, before taking up a position on the Western Front on 4 December 1916, in time to sit out an uncomfortable winter in the trenches.

[1] For the next five months the 36th Battalion alternated between periods of duty manning the line and training or labouring in the rear areas in Belgium, before it was moved south to the Somme to help blunt the German advance during their last-ditch effort to win the war as part of the Spring Offensive of 1918.

[1] The earlier campaigns had severely depleted the AIF in France and since 1916 the flow of reinforcements from Australia had slowly been decreasing as the war dragged on and casualties mounted.

The refusal of the Australian public to institute conscription had made this situation even worse, and in late 1918 it became clear that the AIF could not maintain the number of units it had deployed in France and it was decided to disband three battalions—the 36th, 47th and 52nd—in order to reinforce others.

[4] In 1929, following the election of the Scullin Labor government, the compulsory training scheme was abolished and in its place a new system was introduced whereby the Citizens Forces would be maintained on a part-time, voluntary basis only.

[4] With the outbreak of World War II, the battalion was called up for a month of continuous service and recruitment was stepped up as national servicemen were used to fill the ranks.

[8] In March 1942, following the entry of the Imperial Japanese into the war, the 36th Battalion was moved to Newcastle, along with the rest of the 14th Brigade in order to defend against a possible invasion of the area.

[8] At this time, they received a large batch of reinforcements from the 49th Battalion which had fought alongside them around Sanananda,[14] and in July 1943 they had returned to New Guinea, where for the next fifteen months they would be moved around the island, stationed in Port Moresby, Soputa, Buna–Oro Bay, Lae, Wau, and Bulolo, carrying out various garrison tasks once more.

[8] Operating on the Gazelle Peninsula, the 36th Battalion took part in the Australian campaign of containment against the much larger Japanese forces that were in existence on the island at the time.