After the 2/5 Company arrived in Wau they were reinforced by a platoon of reinforcements originally destined for the 1st Independent Company. Unfortunately the 1st Independent Company had been overrun by the Japanese. The anti-tank platoon of 23 Australian Infantry Brigade AIF had earlier joined up with the 2/5th in Port Moresby. Along with some members of the New Guinea Volunteer Rifles (NGVR), a local militia unit, they all were part of Kanga Force.

Men of the 2/5 Independent Company and the NGVR attacked the Japanese at Salamau, a main Japanese base, on the evening of the 28/29 June 1942. Approximately 100 Japanese were killed and equipment and intelligence documents were captured.

Kanga Force was reinforced by 2/7 Independent Company in October 1942 after they were flown from Port Moresby to Wau. 2/5 Independent Company, and 2/7 Independent Company carried out a very major attack on Mubo, a large Japanese outpost on 11 January 1943. Some elements of the 2/5 Independent Company were operating in the Markham Valley at that time.

By the end of 1943, 2/5 Independent Company had been re-designated as 2/5 Commando Squadron, 2/7 Cavalry (Commando) Regiment.