The 11th Hussars sailed to Egypt in 1934. They were sent to Palestine in 1936 to suppress the Arab Rebellion, and remained there intermittently until 1939.

When the 11th Hussars sailed to Egypt in 1934, they were equipped with 34 Rolls-Royce and Lanchester armoured cars, and 5 Vickers Crossley, used for command, which were later replaced by Morris and Austin 7 armoured cars.

In April 1936 a mass revolt of Palestinian Arabs broke out in what is now Israel. By the time the 11th arrived in early July 1936, the rebellion had developed into guerrilla warfare. RHQ (Regimental Headquarters) was established at Nablus to provide escorts for convoys, mobile reserves and artillery. The threats were from snipers and land mines. Supplies used the road through the hills, which were controlled by Arab guerrillas. The campaign was fought mostly by small groups of armoured cars, co-operating with other arms, a RAF wireless lorry travelling with each convoy. If attacked, a call was sent for assistance, either from the air or ground forces in the area. One troop of two armoured cars would support the convoy while two troops waited with the Striking Force, ready to intervene in the event of an attack. The 11th patrolled the underground oil pipeline from Iraq.

On 28th July B Squadron were ambushed whilst escorting the Lincolnshire Regiment. They pinned down the enemy, supported by Hart biplanes and tanks, resulting in 21 Arabs being killed. Lieutenant Tommy Pitman won a Military Cross for his gallantry and his Troop Sergeant, Tom Mattison, a Military Medal. Lance Sergeant Harry Petch won the Distinguished Conduct Medal for defusing a land mine, and was later awarded the Military Cross and promoted to Major.

The 11th Hussars stayed in Palestine until October 1936 and then returned to Egypt. In 1938 they deployed to Palestine again to deal with a new revolt. They were recalled to Egypt, but C Squadron later returned to Palestine. In April 1939 the 11th were recalled to Egypt.