No. 82 Squadron continued to conduct ground attack missions in New Guinea until March 1945, when it relocated to Morotai Island in the Netherlands East Indies (NEI). From Morotai, the squadron conducted ground attack missions in the NEI and escorted Allied convoys carrying troops bound for the liberation of Borneo. The relegation of First Tactical Air Force to areas of operation bypassed by the main Allied thrust towards the Philippines and Japan led to poor morale, culminating in the so-called "Morotai Mutiny" of April 1945. Squadron Leader Bert Grace, commanding officer of No. 82 Squadron, was among eight senior pilots who tended their resignations in protest at what they saw as the waste of resources on targets of dubious military value. The officers were persuaded to continue on operations, and Grace oversaw the squadron's move to Labuan island in June as part of Operation Oboe Six, the invasion of North Borneo. The Kittyhawks flew in support of Australian Army units until the end of the war. On one such mission on 8 August 1945, No. 82 Squadron made a round trip to attack targets around Kuching in Sarawak. During the first strike two Japanese aircraft were destroyed as they were taking off from the airstrip, while a transport was also destroyed and two more were damaged. The fighters then attacked several barges near Kuching Town and on the Sarawak River. Fourteen members of the squadron were killed on operations during the war.