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.

In mid 1943, the Australian Army re-organised its six front-line divisions as light infantry Jungle Divisions. As the three Second Australian Imperial Force (AIF) division's armoured reconnaissance regiments were considered to be unsuited to jungle terrain, having been raised for service originally in the Middle East and North Africa, their cavalry squadrons were disbanded.

The regimental headquarters of the disbanded units were then used to command and administer the independent Commando companies, as they were amalgamated into a regimental structure. Subsequently, the independent companies were redesignated as "Cavalry Commando Squadrons" and later, in 1944, this was simplified to "Commando Squadrons".

As a part of this re-organisation, the following regiments were formed:

* 2/6th Cavalry Commando Regiment (attached to the Australian 6th Division)
2/7th Commando Squadron
2/9th Commando Squadron
2/10th Commando Squadron

* 2/7th Cavalry Commando Regiment (attached to the Australian 7th Division)
2/3rd Commando Squadron
2/5th Commando Squadron
2/6th Commando Squadron

* 2/9th Cavalry Commando Regiment (attached to the Australian 9th Division)
2/4th Commando Squadron
2/11th Commando Squadron
2/12th Commando Squadron

Australian commandos evolved from these units that were formed in Australia during WW2, these centered around the Independent Companies and "M" and "Z" Special Units, all trained for unconventional warfare. At the end of WW2 these units were disbanded.

Some time after the end of WW2 a need was again identified for these type of forces and 2 Commando Company was raised on 24 Feb 1955. 1 Commando Company was raised on 25 June 1955. Within these units a requirement also existed for long range communications back to Australia, with radio operators using Morse code, manual encryption and portable HF transmitting equipment. To provide long range communications 301 Signals Squadron was raised in 1960, to later become 126 Signal Squadron (Special Forces) and move to Melbourne in 1968.

Although carrying out some common training these 3 units functioned independently until the forming of the 1st Commando Regiment on 1 Feb 1981 when they were all brought under a central command. In 1999 126 Sig Sqn was transferred to 4 RAR(Cdo) and 301 Signal Squadron was re-raised to provide communications support for the 1st Commando Regiment.

All Australian commandos wear the Sherwood green beret adopted from the British Commandoes. It was first used by the Companies and later continued under 1st Commando Regiment. Prior to 1956, the units wore the traditional Australian Rising Sun Badge. It was then decided to have a competition in which both 1 and 2 Company members could enter for a new design. The Officer Commanding 2 Company submitted a design by Warrant Officer Ronald Nordhoff, a dagger and boomerang, with the motto "Strike Swiftly". Much discussion continues as to who had the greatest influence on the final design.

The Black and Green Colours of the 1st Commando Regiment were adopted from the Colours used by the WW2 1st Inf Bn AIF. The sand colour background ties in with the SCOMD patch, these along with the dagger and boomerang of the Commando Companies has been used to form the emblem of the 1st Commando Regiment Association - Victoria.