‘Army personnel featured in a wild video in which one soldier appears dressed in a Ku Klux Klan outfit were only letting of a "bit of steam'', Prime Minister John Howard says.

The video, posted on the YouTube website, features soldiers at Darwin's Robertson Barracks taking part in drinking games and stunts, with one dressed in a KKK outfit.

Mr Howard today urged the public not to over-react.

"I have some understanding of the disposition of people in these situations to let off a bit of steam,'' he said.

The prime minister said whether or not to discipline the soldiers who featured in the video was a matter for the military to decide.

"Let the military deal with those things in their own way,'' he said.

"I just think people can over-react with these things. People get into a lather and sweat and so on ... let's be sensible about this.

Brigadier Orme said the behaviour was "not in the least" common in the defence forces, describing it as "abhorrent and inappropriate".

"It's a terrible thing - it reflects badly and we don't tolerate it," he said.’

Don't Over-React, Says Howard