It initially operated out of HMS Daedalus, RNAS Lee-on-Solent, Hampshire, however, after the Naval Air Station was attacked and bombed, it then moved to north to HMS Condor, RNAS Arbroath, Angus, Scotland, in September 1940.

Here, it provided training for Observers and also Air Gunners and where four years later, in March 1944, it disbanded.

[5] 754 Naval Air Squadron then moved to RNAS Arbroath (HMS Condor), located near Arbroath in East Angus, Scotland, on the 7 September 1940, gaining North American Harvard IIb, an advanced trainer and Fairey Swordfish torpedo bomber,[6] but only retaining the Percival Proctor aircraft.

In February 1943 the torpedo bomber Fairey Albacore I arrived, however, by December they were gone and the squadron was back to only operating the Westland Lysander aircraft.

In January 1944 Stinson Reliant I arrived, however, on the 27 March 1944, 754 Naval Air Squadron disbanded at RNAS Arbroath.