Upon its return to Australia in 1948 the Squadron was expanded and re-equipped to form the 1st Armoured Regiment.

After a brief period of training the Squadron embarked for Japan in late March 1946, arriving at Hiroshima on 12 April 1946.

These patrols were generally uneventful and, like almost all of the Allied occupation force, the Squadron did not experience combat.

Due to the unsuitability of the Staghounds for Japan's roads the Squadron was completely equipped with Canadian Scout Cars in 1947.

In July 1949 the Squadron was expanded and re-equipped with Churchill tanks to form the 1st Armoured Regiment.