The squadron was initially formed as a territorial unit of the New Zealand Permanent Air Force in Christchurch in 1930.

During World War II, the squadron served in the Pacific, undertaking patrol operations.

Since then, personnel from the squadron have served in the Vietnam War, East Timor, Singapore, the Sinai, and the Solomon Islands.

3 Squadron formed as a territorial unit of the New Zealand Permanent Air Force (NZPAF) based at Christchurch in 1930.

[citation needed] The squadron later received modern aircraft – Lockheed Hudsons – and converted to the patrol bomber role.

The squadron moved to Kukum Field on Guadalcanal and stayed there until October 1943 when it returned to Santo where it remained until January 1944.

In October 1944, the squadron moved to Emirau where they flew interdiction patrols against Japanese shipping and ground targets.

It subsequently operated transport types such the Bristol Freighter and Army co-operation types such as the Auster AOP, before becoming a dedicated helicopter squadron in 1965, based at Hobsonville, Auckland, and equipped with Bell 47s, and from the end of the year Bell UH-1 Iroquois.

The flight flew Westland Wasps, and later Kaman Seasprites of the naval air wing attached to the squadron from 1966 to 2005.

For many years a detachment was based in Singapore, to support the New Zealand Army presence there, and combat Indonesian insurgents.

Equipment included a rescue winch, nightsun searchlight and night vision goggle capability.

[citation needed] On 2 March 2016, after a successful tender acquisition, the Iroquois helicopter fleet was shipped to Dakota Air Parts International, warehouse in Phoenix, Arizona.

A number of ex-3 Squadron Bristol Freighters have survived, including one in the Royal New Zealand Air Force Museum.