The term Commando is derived from the South African/Dutch word used by the Boers identifying their irregular sized raiding forces employed against the British during the South African Wars. Australian commandos evolved from similar unconventional units formed in Australia during WW2. These centered around the Independent Companies and M and Z Special Units.

On 15th January 1995, Lieutenant Colonel R.C. Smith who was posted to Land Headquarters and had carried out the detailed planning to re-raise the 4th Battalion RAR and was appointed Commanding Officer. Manning was approved for 69 regular army and 103 General Reserve soldiers in the first year, building to 3 regular army rifle companies and 1 General Reserve rifle company by 1998, the total unit strength would be 706 all ranks.

The 2nd/4th Battalion was unlinked by the Chief of the General Staff, Lt Gen J.C. Grey, AO on a parade at Samichon Lines, Lavarack Barracks, Townsville on 1 February 1995.

The Battalion enjoyed strong ties with the 4th Infantry Battalions Association and was barracked at Jordan Lines, Holsworthy. It was intended the Battalion would occupy Tobruk Lines when 5/7 RAR (Mechanised) moved to Darwin in 1998. The Battalion finally moved into Tobruk Lines in November 2000 prior to Christmas, to enable it to conduct training before deploying to East Timor in April.

In 1996, a decision was made to convert the Battalion to a Special Forces unit and on 1 Feb 97 it was re-named 4 RAR (Commando). Regular serving members were given the opportunity to undertake Special Forces training or elect a posting to a conventional forces unit. No General Reserve positions existed in the new structure and reserve members discharged or posted to General Reserve units.

On 19 June 2009 it was renamed from the 4th Battalion, Royal Australian Regiment (Commando) to 2nd Commando Regiment to align it with the existing 1st Commando Regiment within the Special Forces group. It includes 126 Commando Signal Squadron providing signals support.

All Australian Commandos wear the Sherwood green beret adopted from the British Commando's. It was first used by the Companies and 126 Signal Squadron (Special Forces) and later continued with the formation of the 1st Commando Regiment. It is now also worn by the 2nd Commando Regiment.