The squadron was reformed as a night bomber unit on Hyderabads at RAF Upper Heyford on 3 January 1928, before moving to RAF Boscombe Down in 1931 and later on to RAF Dishforth in 1937 to form part of the newly created No. 4 Group of RAF Bomber Command.
During this time, the unit operated a variety of types, including Hinaidis, Virginias and Handley Page Heyfords, beginning the Second World War as the first unit equipped with the Armstrong Whitworth Whitley.
The squadron remained a part of No. 4 Group throughout the war, re-equipping with the Halifax in December 1941.
On 8 July 1940 they moved to RAF Leeming, Yorkshire and again on 19 August 1942 to RAF Melbourne, Yorkshire