In 2004, 1-506th was deployed from Korea to Habbaniyah, Iraq. Instead of returning to Korea, the battalion redeployed to Fort Carson, Colorado, on 30 September 2005 to be reflagged to 2-12th Infantry Regiment. On 30 September 2005 it was relieved (less personnel and equipment) from assignment to the 2d Infantry Division and assigned to the 4th Brigade Combat Team, 101st Airborne Division (Air Assault). Concurrently, a "new" 1-506th was created by reflagging an existing battalion within the 101st and assigning it to the division's 4th Brigade Combat Team. Additionally, the colors of 2-506th were reactivated within the 4th BCT, again by reflagging an existing battalion.
