The squadron operated from the aircraft carrier off the coast of Iceland before delivering air support during the Salerno campaign in Italy.

It ultimately disbanded at HMS Gannet, RNAS Eglinton, Northern Ireland in January 1944, with its aircraft being transferred to 816 and 1832 Naval Air Squadrons.

878 Naval Air Squadron formed at RNAS Lee-on-Solent (HMS Daedalus), Hampshire, on 1 March 1943, Lieutenant Commander(A) M.F.

[1] Following a period of training at RNAS Hatston (HMS Sparrowhawk), in Orkney, in Scotland, the squadron boarded the lead ship of her class, HMS Illustrious on 8 June and commenced operations in the Icelandic region the subsequent month.

[3] In August 1943, the aircraft carrier proceeded to the Mediterranean, where 878 Naval Air Squadron engaged in combat over the Salerno beachhead.