The battle was part of the Markham and Ramu Valley – Finisterre Range campaign, which consisted of series of actions fought by Australian and Japanese troops in the Territory of New Guinea as the Australian 7th Division advanced through the foothills of the Finisterre Range from Dumpu towards Bogadjim, near Madang on the northern coast, following the capture of Lae in mid-September 1943.

To follow these forces up, the 9th Division's focus then shifted to the Huon Peninsula, while the 7th Division—following the capture of Kaiapit—was moved to Dumpu and Marawasa, to carry the Australian advance through the Ramu Valley and into the Finisterre Range, towards Bogadjim near Madang on the northern coast.

[4] In mid-October, the 21st Brigade's advance began with the South Australians from the 2/27th Infantry Battalion, under the command of Lieutenant Colonel John Bishop, leading the way,[5] having been relieved of road construction duties around Kaigulin.

[6] Throughout 11 October, around Pallier's Hill, elements of the 2/14th Infantry Battalion had clashed with Japanese troops that were threatening to cut off the 2/27th's supply line to the south.

Consequently, Kagawa dispatched three companies from the Japanese main defensive position around Kankiryo, leaving late in the day on 11 October, to attack from the east.

[11] With ammunition running dangerously low for the Australian defenders, supplies were hurriedly pushed forward during the early morning, being brought up by native carriers across the Faria River.

[12] Following the fighting on John's Knoll and Trevor's Ridge, the Japanese, having failed to re-establish their supply route, were forced adopt a defensive posture.

[13] Meanwhile, the Australian advance through the Finisterres continued towards Shaggy Ridge, a 5,000-foot (1,500 m) heavily wooded razor-back feature, that dominated the Japanese defensive position.

In mid-December, the Australians—who had managed to ensconce themselves on the southern slope—were ready to launch their assault on Shaggy Ridge, starting with an attack on the Pimple, by elements of the 21st Brigade, which had taken over from the 25th.