Thousands of people turned out for the final parade through Clonmel of the local army command.
The 12th infantry battalion leaves the town as Kickham Barracks closes as part of cost-cutting measures.
The final flag lowering ceremony took place this afternoon and the flag was handed over to Commanding Officer Robert Kiely.
The 200 soldiers stationed there are being relocated to Limerick and Kilkenny, although up to 30 have retired.
In November 2011, Cabinet voted to close military barracks in Cavan, Clonmel, Castlebar and Mullingar.
The decision prompted the resignation of Minister of State Willie Penrose.
The overall strength of the Defence Forces has been reduced in recent decades, partly due to the peace dividend from the Northern Ireland peace process.
At the height of the Troubles in 1981 there were over 15,000 serving troops. Now there are about 9,500 - the lowest since 1972.