Kentucky ANG units are trained and equipped by the Air Force and are operationally gained by a Major Command of the USAF if federalized.

Commonwealth missions include disaster relief in times of earthquakes, hurricanes, floods and forest fires, search and rescue, protection of vital public services, and support to civil defense.

[1]With the surprise invasion of South Korea on 25 June 1950, and the regular military's complete lack of readiness, the ANG was mobilized into federal active duty.

The squadron was moved to Godman Air Force Base at Fort Knox along with the 123d Fighter Group.

The 123rd Airlift Wing will receive a squadron of eight new C-130J Super Hercules aircraft, replacing its current fleet of the C-130H Hercules models which the unit has flown since 1992.Multiple groups, squadrons and flights carry out the unit's mission by providing administrative and logistical support, including airlift operations, combat control, pararescue, maintenance, supply, transportation, contracting, communications, civil engineering, personnel, base services, security forces and medical functions.

On September 17, 2018, the Kentucky Air National Guard deployed the 123rd Fatality Search and Recovery Team following Hurricane Florence at the request of the North Carolina public health officials.