Between 1837–1846, the battalion annually sent one of its officers to the Caucasus, where the Russian Army was waging a semi-permanent counter-insurgency campaign. The size of the battalion was increased in 1840, after which the Guards' Barracks had to be expanded with an annex building on the side of Kasarmikatu. After the Crimean War, the Russian Army faced budget cuts and the size of the battalion was decreased in early 1860. The Finnish grenadier battalion formed in 1846 was also disbanded in the same year. After the allotment system, which had been reintroduced during the Crimean War, was ramped down in 1867 in response to the famine of 1866–67, the battalion was left as the only operational Finnish military unit. The organization of the Russian military was reformed in 1871 and all rifle battalions were formed into a single rifle brigade, which the Finnish Rifle Battalion was also attached to. At the same time, its name was changed to "The 3rd Finnish life guard rifle battalion".