In mid-1943 the Australian high command decided to disband the divisional cavalry regiments and use their headquarters elements to administer the independent companies that had been raised earlier in the war.

Equipped with Vickers light tanks and Bren carriers, it carried out garrison duties around the Suez Canal, before being moved to Cyprus following the fall of Greece.

[1][4] After a period of training and defensive duties in Queensland, in September 1942 the regiment was sent to New Guinea to help defend Port Moresby as the Japanese continued their advance along the Kokoda Track.

[3] Upon the 2/7th's arrival, the decision was made for the regiment to leave its Bren carriers in Port Moresby and as the campaign began to turn in the favour of the Australians the 2/7th were flown to Popondetta to reinforce the units there in December.

[3] At this time the Australian Army was undergoing a period of restructuring as its strategic focus shifted towards concentrating upon fighting the war against the Japanese in the Pacific.

[3] Landing on Green Beach on 1 July 1945, the regiment's three squadrons participated in the advance along the Vasey Highway, undertaking the flank protection and reconnaissance roles before contributing to the mopping up effort as the war came to a close.