From 1909 to 1912 Butler served in Nicaragua enforcing U.S. policy. With a 104-degree fever he led his battalion to the relief of a rebel-besieged city, Granada. In December 1909 he commanded the 3d Battalion, 1st Marine Regiment on the Isthmus of Panama. On August 11, 1912, he was temporarily detached to command an expeditionary battalion he led in the Battle of Masaya on September 19, 1912, and the bombardment, assault and capture of Coyotepe Hill, Nicaragua, in October 1912. He remained in Nicaragua until November 1912, when he rejoined the Marines of 3d Battalion, 1st Marine Regiment, at Camp Elliott, Panama.