This Memorial is situated at Jalan Tanjung Batu. 3,908 graves of soldiers who either died in battle or captivity lie here. Most of the soldiers were Australians and British with some from the Punjab Signal Corp, New Zealand as well as a few locals.

In February 1945, the Japanese, apprehending an Allied landing in the Sandakan area, started to force march the prisoners to Ranau on which was what came to be known as the infamous Ranau Death March. Hundreds upon hundreds perished along the way and those who were left behind at the Sandakan POW camp also died or were killed. Many of the dead were reburied here at Labuan.

On 10 June 1945, Allied troops landed at Brown beach at Tanjung Purun to begin what was to be the liberisation of Borneo from the Japanese. Prior to this, Labuan town was heavily bombed aerially to flush out the enemies. Most of the buildings were destroyed. At the place known as the Pocket fighting also took place.

The remains of the Allied troops were gathered from all over Borneo to be interred at the Cemetery. The graves lie in long neat rows all bearing a plaque, mostly identified, many not, but 'known unto God'. The Labuan War Cemetery and Memorial is visited very regularly by War Veteran groups, especially from Australia who have included Labuan as an important destination on their battle-field tours circuit. On the first Sunday of November every year, a service to mark Remembrance Day is held here and is attended by locals and foreign visitors.

The place was constructed, and is maintained by Commonwealth War Graves Commission.

The lawns are beautiful kept and visitors will appreciate the peace and tranquility of the place as they seek to understand the senselessness of the deaths of so many brave young men.