The 54th Battalion was raised in Egypt on 16 February 1916 as part of the "doubling" of the AIF. Half of its recruits were Gallipoli veterans from the 2nd Battalion, and the other half, fresh reinforcements from Australia. Reflecting the composition of the 2nd, the 54th was predominantly composed of men from New South Wales. The battalion became part of the 14th Brigade of the 5th Australian Division.

Moving to France in June 1916, the 54th fought its first major battle on the Western Front at Fromelles, on 19 July. It was a disaster. The 54th was part of the initial assault and suffered casualties equivalent to 65 per cent of its fighting strength. Casualty rates among the rest of the 5th Division were similarly high, but despite these losses it continued to man the front in the Fromelles sector for a further two months.

Source: Australian War Memorial