The squadron then undertook operations during the Indonesian National Revolution, before eventually being disbanded in July 1950 after being transferred to Indonesia.

18 (NEI) Squadron was formed at RAAF Station Canberra on 4 April 1942, under the operational command of the Royal Australian Air Force's No.

The majority of the aircrew were Dutchmen who had been evacuated from the Netherlands East Indies after the Japanese invasion, while most of the groundcrew were Australian.

While the squadron briefly operated 10 A-20 Havoc light bombers in early 1942,[6] it was fully equipped with 18 B-25s by 21 September 1942, following what was wrongly believed to have been a successful attack by one of the squadron's Mitchells, piloted by Captain Guus Winckel, on a Japanese submarine off the New South Wales coast near Moruya in June.

18 (NEI) Squadron deployed to a partially constructed MacDonald Airfield in the Northern Territory to operate in the North Western Area.

After a period of further training, the squadron began flying operational missions in early January 1943 and was primarily tasked with reconnaissance flights and raids on Japanese ships and bases in the occupied NEI, focusing on East Timor, and on Tanimbar and Kai Island.

[7] Part of the squadron was detached to Exmouth, Western Australia in March 1944, in response to Allied intelligence that a Japanese attack on Fremantle or Perth was likely, but it returned to Batchelor shortly afterwards after which the squadron attacked targets in the NEI for the remainder of the year, focusing especially on Japanese airfields.

[4][7] Anti-shipping attacks were also undertaken, and on one raid around Tioor Island on 23 June, the squadron's commanding officer, Lieutenant Colonel E.J.G.

It also provided support to an Australian amphibious landing on Makassar in late September 1945, after the conclusion of hostilities with Japan.