 Balodis returned to Latvia immediately after the end of World War I in November 1918, and joined the first armed units of the newly established Republic of Latvia on 18 December 1918.When Riga was threatened by the advancing Red Army, Balodis retreated from Riga together with the army and the government on 3 January 1919.On 26 February 1919 he was promoted to the rank of Lieutenant colonel.