The battalion arrived in Greece on 22 March and was quickly deployed to the north of the country to resist the anticipated German attack. The battalion took up positions at Veria on 7 April but, the Allied forces was quickly overwhelmed and it was forced to withdraw south on 12 April, eventually being evacuated by sea from Megara on 25 April. Instead of returning to Egypt, the 2/1st was landed on the island of Crete, arriving the day after they were evacuated from Megara, and they were pressed into defend the airfield at Retimo, where they joined the 2/11th Battalion. On 20 May, the Germans launched an airborne invasion of Crete. Two battalions of German parachute troops attacked the airfield and the 2/1st, by then under the command of Lieutenant Colonel Ian Campbell, was heavily engaged as they put up a strong defence during the Battle of Retimo. The Allied evacuation began on 28 May, but the message to withdraw did not get through to the two battalions holding the airfield, and they continued to hold until 30 May. At that point, though, they were overwhelmed as the Germans, having been victorious elsewhere on the island, were able to bring in reinforcements – including armour and artillery – and concentrate their efforts against the two battalions holding Retimo. As food and ammunition ran out, the 2/1st Battalion was forced to surrender and its personnel became prisoners of war. The fighting on Crete cost the 2/1st heavily, with 43 killed, 64 wounded and 511 captured.