During the Indo-Pakistani War of 1971, the 20th Lancers was part of the 8th Infantry Division in the Shakargarh-Zafarwal Sector, and formed part of a delaying force tasked with preventing an intrusion of Indian forces between Deg Nadi and River Bein for 48 hours. The regiment held up the invading Indian divisions for two weeks against repeated attacks, with the loss of sixteen men. The 20th Lancers was subsequently awarded the battle honour "Shakargarh 1971". Sowar Muhammad Hussain was awarded a posthumous Nishan-i-Haider for outstanding gallantry, the only occasion on which this award was won by the Pakistan Army Armoured Corps.