It was re-raised in 1921 as the "32nd Battalion (Footscray Regiment)", a unit of the part-time Militia, and during the interwar period the battalion served as a home defence unit in Victoria. During the Second World War the battalion was merged with the 14th Battalion to become the &lt;a href="14th/32nd%20Battalion%20%28Australia%29"&gt;14th/32nd Battalion (Prahran/Footscray Regiment)&lt;/a&gt;, serving firstly as garrison troops in Australia and New Guinea before taking part in the fighting during the New Britain campaign. In July 1945, the 14th/32nd was disbanded.