In Villers-Bocage, A Company of the 1/7th Queen's secured the area around the railway station and B and C companies occupied the east side of the town. German infantry had entered the town and house-to-house fighting began. Two German tanks were damaged and driven off, but the 1/7th Queen's infantry companies became mingled and were ordered to fall back to reorganise. A Company was ordered back to the railway station, C Company was assigned the north-eastern edge of the town and D Company the south-eastern edge. B Company was placed in reserve and the battalion anti-tank guns were distributed along the front line. At the town square an ambush was laid by the 4th CLY. A Sherman Firefly, several Cromwells, a 6-pounder anti-tank gun and infantry of the 1/7th Queen's with PIATs, waited for German tanks to move down the main street. To the west of the town, the Germans attacked the 1/5th Queen's near Livry and lost a tank.