Its origins begin however, on 30 April 1908 as the 1st Aero Company, a pre-World War I independent unit of the New York National Guard.

The company was organized to provide the New York National Guard with an "aeronautical corps" for balloon observation, commanded by Major Oscar Erlandean.

The men engaged in construction activities, drilling, digging ditches, making roads, and putting up tents for new recruits arriving at the field.

It was organized and federally recognized in November 1922 at Miller Field on Staten Island and redesignated as the 102nd Observation Squadron in January 1923.

[9] During the inter-war years, the 102nd Observation Squadron flew a variety of aircraft but continued to serve as the aerial eyes for the commander of the 27th Infantry Division.

However, squadron elements were called up periodically by the state of New York to perform emergency duties that included reconnaissance for the United States Department of the Treasury of vessels conducting illegal liquor trade off the New York-New Jersey coast in the 1920s; support of flood relief efforts in Vermont 6–16 November 1927; aid to civil authorities during a prison break from the maximum security Auburn Prison, 11–12 December 1930; and flood relief efforts in upstate New York 11–13 July 1935.

The Army relocated it to Fort McClellan, Alabama, shortly after its call up, then assigned it a year later to the 71st Observation Group.

After the Attack on Pearl Harbor, the squadron was moved to Southern California, flying antisubmarine patrols over the Los Angeles coast until November 1942.

As part of the formation of the Air National Guard after World War II, the unit was reconstituted on 21 June 1945.

It was organized at Floyd Bennett Field, Brooklyn, New York, and was extended federal recognition 21 March 1947 and activated by the National Guard Bureau.

The squadron was equipped with Douglas B-26 Invader light bombers and was assigned to the 106th Bombardment Group and operationally gained by Tactical Air Command.

Parts were no problem and many of the maintenance personnel were World War II veterans so readiness was quite high and the planes were often much better maintained than their USAF counterparts.

With the surprise invasion of South Korea on 25 June 1950, and the regular military's lack of readiness, most of the Air National Guard was placed on active duty on 1 February 1951.

The 102nd was re-equipped with Boeing B-29 Superfortresses and given the mission to train reservist crewmen to back-fill rotating B-29 combat crews serving in Korea.

With the Starfire, the 102nd began standing end of runway air defense alert, ready to launch interceptors if ADC Ground Intercept Radar picked up an unidentified target.

With the KC-97 being a variant of the C-97 Stratofreighter the conversion of the unit from transports to refueling aircraft was easily accomplished, the squadron receiving the KC-97Ls with addition of jet engine pods mounted to the outboard wings.

The success of this operation, which would continue until 1972, demonstrated the ability of the Air National Guard to perform significant day-to-day missions without being mobilized.

The squadron's base on Long Island enables it to act as the only Air Force rescue organization in the northeastern United States.

The Pave Hawk and HC-130 dropped survival gear to the vessel, which was riding out the storm, and began their return to base.

The 102nd received international recognition when two aircrews and PJs of the squadron successfully completed the "longest over-water rescue with a helicopter in aviation history" in December 1994, a mission in which a pair of HH-60s flew to Halifax, Nova Scotia, and then 750 miles out over the Atlantic Ocean to search for survivors of the Ukrainian cargo ship Salvador Allende.

A search of the area located the last survivor, and a pararescue, TSgt James Dougherty, jumped into the ocean to effect the rescue.