2 September 1942

The 39th Battalion reaches Kagi village in the early hours, while, back at Eroa Creek, the 2/14th and 2/16th Battalion have held off attacks, including mortar bombardment, all through the night. They are harassed by Japanese snipers from tree tops.

Around dawn, having successfully formed a rearguard to allow their mates to withdraw back to Templeton's Crossing, D Company 2/16th move back down the Track and prepare another ambush.

Stragglers begin wandering in to join the main body of the Australians after days separated in the jungle, while wounded are being stretchered back towards Moresby by the Fuzzy Wuzzy Angels through the terrible terrain.

Both sides are now very wary of each other after the heavy casualties. At one stage an Australian patrol and a Japanese patrol moved parallel to each other for a couple of kilometres on each side of a ridge line with neither prepared to show themselves against the skyline for fear of making an easy target.

The Australians can now only muster around 500 fighting troops to defend the Track