Lae fell in mid-September, more quickly than the Allies had expected, as troops from the 7th Division entered the town from the west, but a large part of the Japanese garrison managed to escape inland towards the Huon Peninsula. Shortly afterwards, the 2/23rd took part in a second amphibious landing north of Finschhafen, at a beach designated "Scarlet Beach" by the Allies. Between 22 September and 9 December, the 2/23rd took part in the Huon Peninsula campaign, taking part in significant actions around Sattelberg and Wareo as the Australians advanced inland. Early in 1944, the battalion took part in the advance to Sio as the withdrawing Japanese were pursued north. Their involvement was limited mainly to patrol actions, and no significant battles were fought before the 9th Division was withdrawn from New Guinea and transported back to Australia for rest in February 1944.