Following the capture of Sattelberg, the 2/48th continued the advance north along with the rest of the 26th Brigade, pushing on over difficult terrain to Wareo, where they arrived on 8 December. Following this, the Japanese began to fall back to Sio in retreat and the battalion's involvement in combat operations on the peninsula came to an end as troops from the 5th Division arrived to relieve them. In January, the battalion camped around the Dallman River before being withdrawn back to Finschhafen, camping around the Song River. In February 1944, the 2/48th was withdrawn back to Australia along with the 9th Division. Sailing aboard an American Liberty ship, the battalion landed in Brisbane on 20 February, and made camp at Kalinga before personnel marched out for a long period of home leave. During its time in New Guinea, the battalion had suffered 125 casualties, of which 36 were killed, three died of wounds, eight died of illness and 77 were wounded.