[10] The 1987 war resulted in a heavy defeat for Libya, which, according to American sources, lost one tenth of its army, with 7,500 men killed and US$1.5 billion worth of military equipment destroyed or captured.

Seeing an occasion to unify Chad behind him, Habré ordered his forces to pass the 16th parallel so as to link up with the GUNT rebels (who were fighting the Libyans in Tibesti) in December.

[17] During the period between 1984 and 1986, in which no major clash took place, Habré greatly strengthened his position thanks to Western support and Libya's failure to respect the Franco-Libyan 1984 agreement.

[21][22] The Libyans also had to deal with the greatly strengthened Chadian National Armed Forces (FANT), which was composed of 10,000 highly motivated soldiers, led by experienced and able commanders, such as Idriss Déby, Hassan Djamous and Head of State Hissène Habré himself.

It was defended by 2,000 Libyans and the bulk of the Democratic Revolutionary Council (CDR) militia (Gaddafi's closest Chadian allies), well-provided with armour and artillery.

[20] Taking advantage of his army's superior knowledge of the terrain, which apparently included unknown access points to the base, Djamous avoided a frontal assault and used his forces' high mobility to surround the Libyan positions and then unleashed his troops, destroying the defending garrison.

France retaliated with a new airstrike on Ouadi Doum and destroyed its radar system, effectively blinding the Libyan Air Force in Chad for several months.

[27] Gaddafi attempted to contain the FANT threat by rushing several new battalions into Chad (especially to Faya-Largeau and Ouadi Doum), including units of the elite Revolutionary Guard.

Although strongly defended by minefields, 5,000 soldiers, tanks, armoured vehicles, and aircraft, the Libyans' base fell to a smaller Chadian attacking force led by Djamous equipped with trucks mounted with machine guns and antitank weapons.

[32] In an attempt to reduce the damage inflicted to his international standing, Gaddafi announced that Libya had won the confrontation, and was now leaving Chad so that the opposition could play its part in fighting Habré.

[34] As part of the Reagan Administration's support for his government, Habré, during a visit to Washington, received a pledge of US$32 million worth of aid, including Stinger anti-aircraft missiles.

For the Libyans, who had previously relied on ponderous tracked armour, the assault represented a conversion to the desert warfare tactics developed by FANT.

Chad claimed that its troops destroyed about 32 aircraft – including Mikoyan-Gurevich MiG-21 and MiG-23 fighters, Sukhoi Su-22 fighter-bombers, and Mil Mi-24 helicopters – before the FANT column withdrew to Chadian soil.

On the other side, Habré also found himself vulnerable, as the French feared that the attack on Maatan as-Sarrah was only the first stage of a general offensive into Libya proper, a possibility that France was not disposed to tolerate.

[38] Gaddafi announced in May 1988 that he would recognise Habré as President of Chad "as a gift to Africa", even if Libya refused to leave the disputed Aouzou Strip.

The formal and final transfer of the Aouzou Strip from Libya to Chad took place on the 30 May, when the sides signed a joint declaration stating that the Libyan withdrawal had been effected.