During World War II the unit operated rescue missions for Allied aircraft and aircrew over the eastern Mediterranean and later the Persian Gulf and Arabian Sea.

294 Squadron was formed at Berka, near Benghazi, Libya on 24 September 1943 from a former air-sea rescue flight.

Equipped with the Vickers Wellington and Supermarine Walrus in the ASR role.

In October 1943 the squadron moved to Landing Ground 91 (LG.91), but still provided detachments to other airfields.

In June 1945 the squadron moved to RAF Basra, Iraq to provide rescue cover in the Persian Gulf and Arabian sea until it was disbanded on 8 April 1946.