After the area was declared secured, McLaughlin and his battalion moved to Pavuvu Island at the beginning of May 1944. After the next several months of training duties, the 5th Marines were designated as landing force for the upcoming Peleliu operation. Captain McLaughlin landed with his company on September 15, 1944, and during the first days of combat, "C" Company repelled two Japanese tank-infantry counterattacks, destroying several tanks and killing supporting infantry. During the next two weeks, McLaughlin and his company repeatedly assaulted heavily fortified enemy positions along the Peleliu Airfield and after four days of intensive fighting, he bravely led his company in an assault under heavy fire to repulse several night counterattacks in which two enemy machine guns were captured, numerous Japanese killed and many tanks put out of action. For his gallantry in action, McLaughlin was decorated with the Silver Star.