850 Squadron was (re)formed by Australia at HMAS Albatross on 12 January 1953.

Equipped with Hawker Sea Fury aircraft, the Squadron was embarked on HMAS Sydney during her post- Korean War patrol of Korean waters in 1953.

It operated briefly out of Hong Kong before returning to Australia in early 1954 where it embarked aboard HMAS Vengeance for a short period.

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