[1] Its first commanding officer was Lieutenant D. Johns and it was initially equipped with Fairey Fireflies and C-47 Dakotas.

It was tasked primarily with training pilots and observers on the Firefly, and in this role the squadron's Dakotas were used as an observer training platform; they were also used to provide a transport and communications capability.

It remained off the order of battle until it was re-formed at Nowra as a training and transport unit on 2 September 1968, equipped with Dakotas and Grumman Trackers.

It also operated in the VIP and fleet requirements roles, with the latter role sometimes seeing the squadron undertake search and rescue tasks, as well as patrolling the Bass Strait to maintain security around the economically important oil facilities there.

A detachment was also sent to operate out of Darwin and Broome, to undertake fishery protection patrols.