On June 1, 1937, the Motorcycle Machine Gun Battalion #2 Battalion (Kraftradschuetzen-Bataillon #2), light infantry, which formerly had been stationed in Eisenach, Thuringia, moved into the barracks with about 900 men. The battalion was part of the German tank troops and carried the tradition of old German cavalry regiments, especially of the Dragoon Regiment #5, led by "Baron (Freiherr) von Manteuffel." The barracks were named "Manteuffel Kaserne" in his honor. On October 17, 1937, the population of Bad Kissingen was invited to an Open House to view the newly completed Post installations.
When Austria was occupied in 1938, the Battalion left Bad Kissingen on March 11 and arrived in Vienna, together with other units of the 2nd Tank Division, during the night of March 12 to 13, 1938.
During the War, Bad Kissingen with all its sanatoriums, hotels, and nursing homes was a rest center for the German Army. Between three and four thousand sick and injured military personnel were accommodated. As an 'open city', it escaped the aerial assaults directed against most German cities.
On the evening of April 7, 1945, the last of the German troops withdrew from the spa and the first units of General Patton's Third U.S. Army arrived in the town, which had surrendered. The pursuing U.S. troops passed on through the town for days afterwards. It was a peaceful occupation and no fighting occurred in the neighborhood.
On November 1, 1945, the XII Tactical Air Command moved to Bad Kissingen from Erlangen and consolidated with the 9th U.S. Air Force. Early in 1948, the Air Force left Bad Kissingen.
From 1948 to 1950, Manteuffel Kaserne was headquarters of the International Refugee Organization (IRO) for Europe. In 1951, the Kaserne was completely renovated and reoccupied by the U.S. Army.
In 1949, an additional 30 acres of land were requisitioned and added to the Kaserne, at which time the buildings PX, EM Club, gym, bowling alley, Commissary and ammunition storage area were constructed. In 1952, 23.651 acres of land were requisitioned on which the buildings for dependent housing were constructed.
General Order #1, Headquarters U.S. Army, Europe, dated February 17, 1953, was published, redesignating Manteuffel Kaserne to "Daley Barracks" in honor of Technician Fifth Grade William T. Daley, of Headquarters and Service Troop, 94th Reconnaissance Squadron (Mechanized), U.S. Army. Daily was posthumously awarded the Distinguished Service Cross for extraordinary heroism in connection with military operations against the armed enemy near Greussen, Germany.
U.S. Army units that have been stationed in Bad Kissingen have included the 35th Engineer Combat Battalion; Company B, 1st Engineer Battalion; 1st Platoon, Company C, 18th Engineer Battalion; 2nd Reconnaissance Squadron (formerly 2nd Battalion, 14th Armored Cavalry Regiment); 501st Armored Medical Company; 31st Medical Service Detachment; 534th Armored Field Artillery Battalion; Company B, 10th Engineer Battalion; 1st Howitzer Battalion, 92nd Artillery, 2nd Howitzer Battalion (now the 37th Artillery); Military Police Highway Patrol; U.S. Constabulary; 14th Military Police Criminal Investigation Detachment; 66th Military Intelligence Group; 176th Signal Company; D Battery, 3rd Missile Battalion; 7th Artillery; Company A, 82nd Engineers; 3rd Division Long Range Recon Patrol (MS); Company D, 3rd Medical Battalion; 2nd Howitzer Battalion, 37th Artillery; and at present the principal units are: 2/11th ACR; 2/41st Field Artillery; A Battery, 1/1st Air Defense Artillery; Company B, 10th Engineer Battalion; 15th Maintenance Battalion (sic); and the Military Police.