With the commencement of Eelam War III, the Battalion continued to be deployed in Pooneryn. The failure to maintain a steady air supply route by the Airforce resulted in the non supply fresh rations to all troops deployed in the Jaffna Peninsula causing numerous hardships. Later, on 12th April 1995 the Battalion was moved to Kopai in Jaffna to be an assault battalion of'Operation Riviresa II & III' that were launched to clear the LTTE fromValikamam, Thennamarichchi, Vadamrachchi, Chawakachcheri, Kilali, Kodikamum and Point Pedro.
While being engaged in 'Operation Riviresa' the troops of the Battalion were also detailed to be a part of 'Operation Sathjaya III' launched to capture Kilinochchi. Troops were tasked to cross the Karandipokku Canal; which the LTTE used as a natural barrier and did all it could to prevent the troops crossing same, and to establish a bridge across it. The Battalion's troops after a fierce gun battle successfully accomplished the task but lost (killed) 38 other rankers while another 130 other rankers received injuries. This led to the troops of 'Operation Sathjaya III' reaching Kilinochchi forcing the LTTE to withdraw. On completion of these tasks the troops were deployed at Nelliyadi.
On 29thJuly 1996, 5 other rankers engaged in providing security to students sitting for the GCE O/L examination at the Nelliyadi Central College were killed when the tractor they were travelling in was caught up in a claymore mine explosion. From Nelliyadi the Battalion was moved to Point Pedro. On 27th July 1996 while engaged in an operation the second-in-command of the Battalion Major TA Pakeer was killed due to enemy fire.
On completion of duties at Point Pedro the Battalion was moved to Telippalai. Thereafter the Battalion was moved to Ampara. The headquarters having been established at the Hardy Institute the troops took part in 'Operation Geekiyana Maaluwo'. Based in Ampara, the soldiers of the Battalion joined the STF in the conduct of several minor operations in Pulukunawa.
The Battalion then moved to Ambepussa and from there went on to Medawachchya in order to take part in 'Operation Edibala' in Mannar. On 10th January 1997 Major AP de Z Wickramarathna RWP was appointed as the Commanding Officer.
Having undergone Battalion Training at the Air Mobile Training School in Bogoda the Battalion returned to the Forward Defence Line at Parayankulam in Mannar. With the commencement of 'Operation Jayasikurui' on 10th May 1997, which was aimed at clearing the A9 road of LTTE activity, the Battalion was attached to the Air Mobile Brigade. On 5th June 1997 while engaged in an operation aimed at capturing Nedunkerni, the Battalion lost three soldiers while a large number of others received injuries.
On 22nd October 1997 the Battalion was moved to Vettilakerni. On 15th February 1998 Major JJ Mohotti was appointed as the Commanding Officer of the Battalion.
The Battalion having moved to Kilinochchi was placed under command to the 543 Brigade. On 29th September 1998 the Battalion was forced to withdraw to Parantan in the face of continuous attacks by the terrorists. The Battalion suffered heavily in terms of casualties with 2 officers and 132 other rankers being killed and a total of 286 officers & other rankers were being wounded.
From Parantan the Battalion moved to over Iyakachchi on 22nd September 1999 and was placed under the command to541 Brigade. On being appointed as the Commanding Officer (officiating), Major WMRVB Weerasekara took over duties on 19th November 1999.
Battalion troops were sent to the Forward Defence Line of Palali. They performed duties from 30thApril 2000 to 10thJune 2000 at Forward Defence Lines in Muhamalei. On 20th December 1999 on completion of duties at Iyakachchi the Battalion Headquarters was shifted to Sorampaththu while the rest of the Battalion was deployed in Maradankerni. While at Maradankerni 16 other rankers were killed due to enemy action.