To replace the lost squadrons, the 822nd and 823rd Bombardment Squadrons were activated in Australia in April 1943, and assigned to the 38th Group. However, the 823rd was not manned until about 20 June 1943, when it moved to Port Moresby, New Guinea and equipped with North American B-25 Mitchells. In August 1943, the squadron strafed Japanese defenses on Cape Gloucester in New Britain, to prepare for the amphibious attack on the island. For this action, it was awarded a Distinguished Unit Citation (DUC). It received a second DUC in June 1944 for missions in which it attacked Japanese airfields, harbors and shipping in New Guinea.