On 12 October 2002, two bombs exploded at Kuta in Bali. The first bomb, detonated by a suicide bomber, exploded inside Paddy's Bar, a popular tourist destination. It is thought this explosion may have been intended to move people onto the street towards a second, larger device in a van outside the Sari Club, which was also triggered by a suicide bomber within a minute of the first explosion. Less than a minute later another device exploded, without causing casualties, near the US Consulate in nearby Denpasar.

In total, 202 people were killed, including 88 Australians. A further 209 people were injured. The Australian Federal Police and the Indonesian National Police conducted a joint criminal investigation into the bombings.

By April 2004, 33 people had been convicted by the Indonesian courts for their involvement in the attack. Indonesian authorities arrested several others who provided assistance to the Bali bombers.

The Department of Foreign Affairs and Trade established a crisis centre to manage the Australian Government’s response to the event.  The Australian Defence Force assisted operations by deploying specialist medical teams, undertaking medical evacuations (66 in total) and provided logistics support. The Royal Australian Air Force flew the injured to hospitals in Darwin and other Australian cities.