Raised in early 1941, mainly from Australian personnel, the squadron served over Europe during the war, operating from various bases in the United Kingdom; it also briefly sent a detachment to the Soviet Union in 1942.

Established under the Empire Air Training Scheme, the squadron was formed for service in Europe with the Royal Air Force and although nominally an Australian squadron, its personnel were drawn from a number of Commonwealth countries including Britain, Canada, New Zealand and Rhodesia.

[4] The squadron received Hampden bombers and the bulk of the Australian personnel arrived on 1 September 1941, having departed Australia on 15 June.

Following the completion of this task the squadron returned to RAF Sumburgh in October, where they received replacement aircraft.

[8] Moving to RAF Leuchars in Scotland, the squadron was re-equipped with Beaufighters in October 1943 and operated against German shipping off Norway and in the Baltic Sea until the end of the war, forming the "Anzac Strike Wing" with No.

[4] The squadron moved to RAF Langham in Norfolk in April 1944, subsequently providing flak suppression for No.

The squadron moved to RAF Thornaby, from where they were involved in attacks on German shipping in the Baltic Sea.

[9] The squadron's final operation of the war was flown on 3 May 1945, when they attacked two German minesweepers in concert with New Zealand aircraft which sunk a tanker.

Between April 1942 and the end of the war, it was credited with sinking 18 vessels: one U-boat, 10 merchantmen, three escorts and four minesweepers.