The 54th Kentucky did not come into being until the final months of the war. In 1864, Kentucky, like other border states, was over run with bands of so called "guerillas". Most of these groups were made up of deserters from both Federal and Confederate armies, men who were dodging service in either army, thieves, and assorted outlaws who owed allegiance to neither North or South. These men were called "Scouters" or "Outliers". While there were legitimate units of partisan rangers, both Union and Confederate, operating in Kentucky, most groups were of the brigand class. These "Outliers" were bent on profit and/or settling personal vendettas using the war as an excuse. The 54th Kentucky Infantry was organized to deal with these.

The regiment was organized at New Castle in Henry County, Kentucky in September , 1864. Attached to the Miltary District of Kentucky it participated in operations against guerillas in Henry County until November, 1864, when it was ordered to East Tennessee to join Stoneman's Command for the raid into Southwest Virginia, taking part in fighting in East Tennessee as well as the Battle of Marion, Virginia on December 17-18, 1864 and the Second Battle of Saltville on December 21st.

After the operations in Southwest Virginia it returned to Kentucky where it resumed operations against guerillas until it mustered out in September, 1865. During this period the 54th fought and assisted in the capture of the notorious raider " Sue Mundy", whose real name was Marcellus Jerome Clark. Clark was given the appellation of Sue Mundy by the press because of his feminine appearance.The most noted action of the 54th during this period was its participation in the pursuit and defeat of William Clarke Quantrill during his Kentucky operations.

Operations against guerillas in Henry County, Kentucky(9/64-11/64)

Stoneman's Raid into SW Va.(11/64-1/65)

Bean's Station, Tennessee(12/10/64)

Big Creek, Tennessee(12/12/64)

Rogersville, Tennessee (12/13/64)

Kingsport, Tennessee (12/13/64)

Bristol, Virginia-Tennessee(12/14/64)

Abingdon, Virginia(12/15/64)

Glade Springs, Virginia (12/15/64)

Marion, Virginia(12/17-18/64)

Saltville, Virginia(12/21/64)

Operations against guerillas in Kentucky, most notably the defeat of William C. Quantrill (1/65-9/65)

Bardstown, Kentucky ( 1/29/65 )

Chaplintown, Kentucky ( 1/30/65 )

Bradfordsville, Kentucky ( 2/8/65 )

Skirmishes in Henry and Shelby County, Kentucky ( March/April, 1865 )

Information from Dyer's Compendium, Kentucky Regiments