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Indian nations were determined to hold on to the lands they had taken back during the Civil War. In Texas the situation was desparate with the Cheyenne and Arapahoe roaming at will and the Comanche, Kiowa and Mescalero Apache controlling western Texas and eastern New Mexico. The 4th Cavalry was ordered into Texas to confront these tribes. The 4th Cavalry was filled with experienced Civil War veterans from both armies and outfitted with the latest and best equipment. On War Department records of that day the 4th Cavalry was rated the best cavalry regiment in the U.S. Army.

From 1869 to 1886, the 4th Cavalry Regiment served on the Western Frontier, participating in the Battles of Red River, Ramonlina, and Pale Duro Canyon. With a swift assault on the Northern Cheyenne village, the Regiment ended the Great Sioux War. The Regiment also waged one of the last campaigns of the Indian Wars: the pursuit of Geronimo's Apaches in1886.

In 1883 the War Department redesignated all cavalry companies as troops. The designation squadron was given to a group of four troops and the cavalry no longer used the designation battalion. Since 1862 the U.S. Cavalry had used guidons similar in appearance to the United States flag to better distinguish Union from Confederate cavalry. On 4 February 1885 the War Department ordered a return to the traditional red and white cavalry guidon used before the Civil War with one specific change. On the upper red half instead of displaying U.S. in white the regimental numeral would be displayed and as before the troop letter would be displayed in red on the white lower half.
4th U.S. Cavalry Regiment, "Quarterhorse," Southwestern U.S. Frontier, 1869-1886