In December 1956, Japan gained membership of the United Nations, marking a significant milestone in Japan's return to international society. In approximately five years since the San Francisco Peace Treaty took effect in April 1952, this had been a difficult diplomatic issue for the Australian government. This article examines how the Australian government dealt with this issue by focusing upon the intersection of Australia's policy towards Japan and Japan's status as a member of the emergent Afro‐Asian bloc. This article argues that Japan's engagement with the rest of the bloc was a rising factor in Canberra's consideration of Japan's place in the world, thereby helping revisit the orthodox historiography of Australia–Japan relations during the early Cold War era which often overemphasises rapid growth of bilateral trade.