Following an attack on the regiment on 23 February, the regiment took part in the mass murder of between 200 and 1,000 ethnic Azerbaijani civilians in the town of Khojaly on 26 February. The event, known today as the Khojaly massacre, was the largest single massacre throughout the entire Nagorno-Karabakh conflict. "Krasnaya Zvezda" reported that personnel of the 366th took part in "military operations" in the town "despite categorical orders of the command of the military district" and that many personnel of the regiment who were selectively searched had "large amounts of money on them, including foreign currency". Russian authorities to date deny the involvement of the regiment in the atrocities at Khojaly. Following the massacre, the leadership of the CIS Joint Armed Forces made the decision to evacuate the personnel of the regiment from Stepanakert to Vaziani in the territory of Georgia. The operation to withdraw the regiment began on March 1 and was accompanied by battles with Armenian volunteer formations. 10 days later, the regiment was disbanded in Vaziani.