During World War II, its predecessor unit, the 17th Bombardment Squadron (Light) fought in the Philippines campaign (1941–1942).

Re-equipped with Douglas A-24 Dauntless dive bombers, then in late 1941, ordered to Philippine Air Force in response to the growing crisis in the Pacific.

Ground echelon arrived in Philippines in late November 1941, however outbreak of World War II in the Pacific caused A-24 aircraft to be diverted to Australia.

Portions of air echelon flew to Australia to pick up aircraft, however Japanese advance in the Philippines prevented their return.

Air echelon reorganized in Australian Northern Territory and fought in Dutch East Indies and New Guinea Campaigns until equipment depleted.

Re-equipped with Curtiss P-40 Warhawks, then Republic P-47 Thunderbolts and engaged enemy forces as a tactical fighter squadron during the Italian Campaign.

After end of United States involvement in Indochina War, 1973, returned to Cannon as a tactical fighter squadron.

The 523d Fighter Squadron also deployed an McDonnell F-4 Phantom II detachment in Tainan Air Base, Taiwan.