It undertook further exercises and training in Egypt and Palestine prior to the Australians being committed to the fighting against the Italians in the Libyan desert in January 1941 during Operation Compass. A series of actions were fought by the Australians around Bardia and Tobruk, before the 19th Brigade entered Benghazi in February. The 2/8th Battalion had only a minor role in the early battles, but was heavily involved in the fighting for Tobruk, being thrown into an attack against an Italian strong hold that was supported by armour. In April 1941, as the Allies grew concerned about a German invasion of Greece, a combined force of British, Australian and New Zealand troops were deployed there from North Africa. Amidst freezing temperatures, the battalion took part in the fighting around Vevi, in northern Greece near the border with Yugoslavia, before the Australians were pushed back by a larger force. A series of withdrawals followed, during which the 2/8th lost most of its equipment and was broken up into several groups. As the Germans overran the country, the 2/8th was evacuated at the end of the month via Kalamata; part of the battalion – almost 200 personnel – were moved by sea back to Egypt, while the rest – almost 400 personnel – were landed on the island of Crete from Royal Navy destroyers, having originally embarked upon the "Costa Rica", which had been sunk en route by several Axis dive-bombers.