The fort was built during the Italian colonial repression of Senussi resistance in the Second Italo-Senussi War (1923–1931), as part of a barrier on the Libya–Egypt and Libya–Sudan borders.

Living quarters had been built around the edges and provided the base for border guards and Italian army armoured car patrols.

[3] The wire comprised four lines of 1.7 m (5 ft 7 in) high stakes in concrete bases, laced with barbed wire, 320 km (200 mi) long, just inside the border from El Ramleh on the Gulf of Sollum, past Fort Capuzzo to Sidi Omar, then south, slightly to the west of the 25th meridian east, to the Libya–Egypt and Libya–Sudan borders.

[3][a] The wire was patrolled using armoured cars and aircraft from the forts, by the Italian army and border guards, who attacked anyone seen in the frontier zone.

[5] On 14 June 1940, four days after the Italian declaration of war on Britain, the 7th Hussars and elements of the 1st Royal Tank Regiment captured Fort Capuzzo.

[6] The fort was not occupied long for lack of troops and equipment but demolition parties visited each night to destroy Italian ammunition and vehicles.

[13] A counter-attack by II Battalion, Panzer Regiment 5 (with eight operational tanks) inflicted many losses and forced the 1st DLI back to Musaid.

On 17 June, the danger of encirclement increased as German attacks reached Sidi Suleiman and the 22nd Guards Brigade was ordered to retreat at 11:00 a.m.