When the Korean War erupted, Shepherd was in command of the Fleet Marine Force (FMF), Pacific, with headquarters at Pearl Harbor. In this capacity, he played a major role in the amphibious assault at Inchon, earning a Silver Star, and in the evacuation of U.S. forces from Hungnam following their withdrawal from the Chosin Reservoir in North Korea in December 1950. In Korea he saw the usefulness and advantages of Helicopters on the frontlines and was amongst those pushing for the increase in number of helicopters in the armed forces saying "No effort should be spared to get helicopters ... to the theater at once – and on a priority higher than any other weapon."