|Part of The Bug War|
| Sky Marshal-in-Chief (Overall Commander)
General Diennes (Ground Forces)
| Very Heavy:||Unknown|
Operation Bughouse was code-name the full-scale invasion of Klendathu. The operation involved Mobile Infantry and K-9 Corps landing on the planet and clearing landing zones whilst the main force of Mobile Infantry landed on the planet and defeated the Bugs.
However, the invasion failed badly forcing the Federal Army to call a general retreat, giving Troopers on the ground only limited time to escape to their dropships. During the beginning of the invasion, when the Neodogs encountered Bugs, they were freaked out enough to commit suicide in large numbers. No wonder Rico refers to this engagement as "Operation Madhouse".
The failed Operation Bughouse cost the Terran Federation badly, preventing them from launching any large battles for a period of time afterwards due to losing large numbers of ships and experienced troops which would take time to replace.