A period of leave followed, after which the brigade concentrated at Wallgrove, New South Wales. The following month, as the Japanese continued their advance towards Port Moresby, the 16th Brigade was hastily committed to defend the town. The Japanese advance was subsequently held at Imita Ridge, and as the strategic situation turned against them, they began to withdraw. In October, the 16th Brigade joined the 25th in a pursuit towards Kokoda. Their first action came around Eora Creek, after which the brigade bypassed Kokoda, which was captured by the 25th Brigade, as the Australians turned their advance north towards Wairopi. The brigade's next action came around Oivi–Gorari. As the majority of the brigade attacked the Japanese around Oivi, the 2/1st Battalion was detached and carried out a flanking manoeuvre with the 25th Brigade to assault the Japanese rear around Gorari. The brigade continued its advance towards the Japanese northern beachheads, coming up against strongly entrenched positions around Sanananda. Heavily depleted by disease and casualties, by December 1942, the 16th Brigade was withdrawn by air back to Port Moresby before returning to Australia in January 1943.