With the increase in the roles and responsibilities of the Royal Brunei Armed Forces, a Project Team was set up in 1993 to study and research for the establishment of the Third Battalion, Royal Brunei Land Forces. The Project Team was led by Major Afflon bin Dato Paduka Haji Hamidon. His Majesty Sultan dan Yang Di-Pertuan Negara Brunei Darussalam consented the establishment of the Third Battalion, Royal Brunei Land Forces officially on 31 May 1994 in conjunction with the 33rd Anniversary of the Royal Brunei Armed Forces.

The official launching was officiated by Duli Yang Teramat Mulia Paduka Seri Pengiran Digadong Sahibul Mal Pengiran Muda Haji Jefri Bolkiah Ibni Al-Marhum Sultan Haji Omar 'Ali Saifuddien Sa'adul Khairi Waddien, on behalf of His Majesty Sultan Haji Hassanal Bolkiah Mu'izzaddin Waddaulah Ibni Al-Marhum Sultan Haji Omar 'Ali Saifuddien Sa'adul Khairi Waddien, Sultan dan Yang Di-Pertuan Nagara Brunei Darussalam bestowed the epistle of the establishment of the Third Battalion to Major Haji Mohd Sahlan bin Hidup, its first Commanding Officer.

In its early formation, the Third Battalion comprised of members from D Company First Battalion, F Company Second Battalion and some from the Command Company (Kompeni Memerintah) and the Admininstrative Company (Kompeni Pentadbiran) of the First and Second Battalion Royal Brunei Land Forces. Currently, the Third Battalion is located at Penanjong Garrison while awaiting for the completion of its permanent camp in Lumut, Belait District.
On 24 Mac 1995, the Air Defence Battery and Penanjong Workshop were excluded from the Support Battalion. Both were integrated into the Royal Brunei Air Force and Royal Brunei Service Force to make the command, control and operation more easy and efficient.