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The main inland Japanese defensive line in the north of New Guinea in late 1943 lay along the ridge-top known as Shaggy Ridge in the Finisterre Ranges. The Finisterre Range lay at the upper reaches of the Ramu River and provided a strategic/tactical defensive buffer to troops defending the north coast of New Guinea. The loss of Lae and incursions by the Australians into the Markham Valley made this a key area of the conflict in late 1943 as the Japanese fought to hold on to their contracting base in northern New Guinea. As the battle for the coastal towns raged both sides became increasingly aware of the importance of the Range and began pushing their forces into consolidated positions within it. The 7th Division was given the task of defending the area and protecting the important airfields there.
The Allies had constructed an airbase at Gusap in the southwestern portion of the ranges while the Japanese improved their line along the ridges overlooking the foothills and town of Dumpu, which had been captured by the 21st Brigade on 4 October. Within this rugged terrain and malarial-infected rivers both sides clashed in patrols and attack and counterattack. On 8 December a Japanese attack at Kesawai fifteen miles below Dumpu drove the 2/25th over the Ramu but could not expand on their success due to a lack of adequate supplies.
On 27 December the Australians commenced a series of set-piece attacks to drive the Japanese from the heights. With aerial and artillery support the 2/16th Battalion made the first inroads carrying a position known as the Pimple and resisting persistent counterattacks in the process. On 20 January the Australians opened their offensive against Shaggy Ridge at Canning's Saddle. The 2/10th attempted to advance along the saddle but met stiff resistance as the Japanese moved forces to meet the threat. In doing so, however, they stripped some of their strength from Shaggy Ridge, which was assaulted the next day by men of the 2/12th and 2/9th clambering its steep sides. Realising the direction of the main Australian attack the Japanese began to counterattack but accurate artillery and small arms fire broke most until the intensity waned. On 23 January the Australians had effectively conquered the heights and began pushing toward the coastal river system. On 26 January Kankiryo Ridge was taken leaving only isolated pockets of Japanese resistance in the area. Australian forces pursued their opponents along the Mindjim River and in March came into contact with US forces moving along the coast from Saidor.
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