Withdrawn to Britain with the rest of the 1st Airborne Division, the next mission was during Operation Market Garden and the Battle of Arnhem, during which the battalion was virtually wiped out. Afterwards, the battalion was reformed but never saw any further action during the Second World War, though it may have gone to Norway with the initial reoccupation force in 1945. The battalion was then assigned to the 3rd Parachute Brigade in the 6th Airborne Division and served with them in Palestine. The battalion was disbanded in 1948, but was reformed by the re-numbering of the 7th (Light Infantry) Parachute Battalion as the 3rd later the same year.