After the war the squadron served in the transport and VIP role.

Due to the threat of German surface raiders against New Zealand shipping, these were replaced with Lockheed Hudsons during 1941.

After the outbreak of hostilities against Japan, the squadron was retained in New Zealand, but during 1943 re-equipped with Lockheed Venturas, and joined the other Hudson and Ventura squadrons of the Royal New Zealand Air Force (RNZAF) in the South Pacific islands.

It was re-formed in 1972 to provide a medium-range transport squadron within New Zealand, at Whenuapai and equipped with six of the RNZAF's Bristol 170 Freighter Mk 31s.

The parade was inspected by Sir Geoffrey Roberts CBE, AFC, LM (US) who had been the first CO when the Squadron was formed in 1941.