In January 1992, the unit carried out an operation to seize 7 IFVs of the 295th Motor Rifle Division of the former Soviet 4th Army. At the beginning of February 1992, the 777th, consisting of 30 officers and 20 soldiers, was redeployed to Shusha to defend the city. Arriving in the city, the battalion immediately began to carry out the tasks assigned to it, with those including reconnaissance and sabotage operations behind enemy lines, as well as escorting columns from Lachin to Shusha. The next day after the capture of Shusha, a group of Azerbaijani troops was encircled in Zarysly Settlement, after which the 777th launched an attack on enemy positions and helped the regular Azerbaijani Army break out of the encirclement. The 777th was then sent to Nakhchivan to take part in the defense of the Sadarak District.