In 1954, 851 Squadron was formed at HMAS Albatross based at RANAS Nowra as a land-based training and fleet support squadron. Initially equipped with Fairey Fireflies and C-47 Dakotas, the Squadron was tasked primarily with training pilots and observers on the Firefly, and in this role the squadron's Dakotas were used as an observer training platform; they were also used to provide a transport and communications capability. Reformed in 1968 it operated in the VIP and fleet requirements roles, with the latter role sometimes seeing the squadron undertake search and rescue tasks, as well as patrolling the Bass Strait. The squadron amalgamated with 816 Squadron RAN in July 1982 before being disbanded for a second, and final, time on 31 August 1984.
