After the 161st was deployed to the Philippines during the Battle of Luzon, Dalton was promoted to brigadier general and reassigned as assistant commanding general of the 25th Infantry Division. Soon after, Dalton was killed in action by a Japanese sniper during the Battle of Balete Pass on May 16, 1945. The pass where Dalton died was renamed in his honor after the battle, and is still sometimes referred to as Dalton Pass today. Dalton was one of only 11 US general officers killed in action during World War II.