Commanders of the PRC People's Liberation Army (PLA) believed that Quemoy (Kinmen) and Matsu had to be taken before a final assault on Taiwan.

The PLA planned to attack Kinmen from nearby Aotou (澳頭) (in Xindian, Xiamen), Dadeng (Tateng) and Lianhe (Lienho) (蓮河) (then part of Nan'an County, now also in Xindian)[8][9] by launching a first attack with 9,000 troops to establish a beachhead, before landing a second force of roughly 10,000 on Greater Kinmen Island, expecting to take the entire island in three days from an ROC garrison not expected to be larger than two divisions.

[10][3] In the opening hours of October 25, the PLA's armada (consisting of hundreds of wooden fishing boats) set sail for Kinmen.

This geographical proximity positioned Quemoy as a critical outpost for controlling maritime access to Xiamen and its adjacent coastal areas, making it strategically vital for the Nationalist government's retreat to Taiwan.

Immediately, flares were fired into the air by ROC troops and searchlights swept the area, which brightly illuminated the PLA's fleet and led to their discovery by the Nationalists.

[14] At about 02:00 when the tide had begun to recede, PLA troops from regiments 244, 251, and 253 landed on the north side of Greater Kinmen Island at Guningtou (Ku-ning-t'ou, 古寧頭[15]), Huwei (湖尾) and Longkou (壟口).

[17] PLA Regiment 244 held high ground at Shuangru Hill (雙乳山), but were beaten back by ROC armor by early morning.

PLA Regiment 253 holding Guanyin Hill (觀音山) and the Huwei Highlands (湖尾高地) were also forced to fall back by 12:00 after an overwhelming ROC counterattack of infantry, tanks, and soldiers with flamethrowers, and supported by mortars and artillery.

At dawn, Regiment 246 managed to break through ROC forces surrounding the village of Guningtou, making a rendezvous with the surviving PLA troops taking cover in the town.

[citation needed] For ROC forces accustomed to continuous defeats against the PLA on the mainland, the victory at Guningtou provided a much-needed morale boost.

With the outbreak of the Korean War in 1950 and the signing of the Sino-American Mutual Defense Treaty in 1954, the Communist plans to invade Taiwan were put on hold.

Chung Lung was supposed to leave on the evening of October 24 after offloading its cargo, but remained, offering an official excuse of "bad weather".

The unmentioned real reason the ship remained in the area was that it was running a side business of smuggling brown sugar from Taiwan island in exchange for peanut oil.

Government reports and scholarly analyses highlighted Chiang Kai-shek's strategic foresight and the KMT's preparedness as key factors in the victory over the PLA.

While acknowledging tactical errors by the PLA, newer perspectives also emphasize the role of "coincidences" that favored the KMT, such as the accidental triggering of a landmine and the sudden revival of malfunctioning tanks.