Upon reformation it served as a fighter squadron until the disbandment of the Royal Auxiliary Air Force on 10 March 1957.

Formed at RAF Pengam Moors near Cardiff (the often cited Llandow was not erected yet) as an army co-operation squadron unit and part of the Auxiliary Air Force on 1 June 1937, No.

In support of RAF Bomber Command's 'Thousand Bomber Raids' in May and June 1942, the squadron sent its Blenheims to attack enemy airfields in the Low Countries and in August 1942 it laid smoke screens for the landings at Dieppe.

There the Squadron carried out attacks against enemy airfields and lines of communication until May 1943, when the fighting in that area ended.

It then became involved in shipping escort duties in the Mediterranean until being disbanded on 25 January 1944 at Borizzo Airfield, Sicily.

Equipped with Handley Page Halifaxes it was now involved in bombing missions over Italy and the Balkans and it also carried out supply drops to partisans in those areas.