For most of the early 20th century the only Army post in Alaska was Chilkoot Barracks/Fort Seward, located just outside coastal Haines in the state's far southeast.

With the threat of war looming as the 1930s ended, the need was established to develop multiple facilities as a means of defending Alaska against possible enemy attack.

The initial construction occurred several miles from Fairbanks along a bend of the Chena River, consisting of an airfield, hangars, housing and support buildings.

Ladd's location near the Richardson Highway and the Alaska Railroad, its access to fuel from the CANOL pipeline, and its position at the time as one of the United States' northernmost developed airbases, were important factors in securing its early Cold War prominence.

However, the Attack on Pearl Harbor in December 1941 forced the temporary halt since the military needed all aircraft for the defense of Alaska.

Reflecting the need to ensure aircraft bound for the Soviet Union were prepared for the flight to Galena and Nome, prior to flying across the Bering Straits to Siberia, Ladd AAF the Alaska Air Depot of XI AF Service Command was activated on 8 July 1942.

From 1946 to 1950, personnel from Ladd laid some of the groundwork of the early Cold War with strategic reconnaissance and Arctic research projects.

Intercontinental ballistic missiles (ICBMs) and satellites would eventually mean a smaller role for AC&W units, the DEW line, and land-based communications such as White Alice.

ICBMs changed the focus of air defense away from responding to manned bombers, and satellites were poised to revolutionize communications.

In May 1960, USAF announced that the 449th Fighter-Interceptor Squadron would be inactivated as part of a "recent reevaluation of the Air Defense Master Plan".

[citation needed] By September 1960, Air Force flying operations ceased at Ladd AFB, while announcements confirmed that the Army would take over the installation.

Most other functions transferred to Elmendorf AFB, including a unit of C-123 transport aircraft, Tactical Air Navigation (TACAN) station operations, and all logistic support for auxiliary sites.

A few operations continued on-site as tenant commands under Air Force control after the transfer to the Army, most notably the USAF hospital and the Arctic Aeromedical Laboratory.

Each Air Force function was scrutinized and either transferred or closed out, with supplies and equipment turned in, inventories zeroed out, and personnel reassigned.