The Iraqi invasion of Kuwait began on 2 August 1990, initiating the Second Gulf War. The UN-sanctioned operation to liberate Kuwait commenced on 17 January 1991, with the land offensive following on 24 February. A ceasefire was declared on 28 February, with a formal end to hostilities on 12 April 1991.

The Royal Australian Navy provided the main Australian contribution, in the form of RAN Task Group 627.4 of two frigates and an underway replenishment ship. Because the latter ship had no air-defence capability, a missile-launcher detachment was provided from the Army's 16 Air Defence Regiment. Army medical personnel were provided for two Australian surgical support teams on US Navy hospital ships in the area while other Army personnel served with one joint intelligence detachment and on individual exchanges with other allied armies.

After the ceasefire, an unsuccessful revolt of Kurdish dissidents occurred in Iraq. Operation 'Habitat' was launched to assist Kurdish refugees in northern Iraq, with over 70 Army personnel being provided to give engineering, medical, dental and logistic support. The Army also provided engineer officers to assist UNSCOM in the inspection of Iraqi chemical, biological and nuclear weapons capabilities. ¹⁷⁵