38 Squadron was the largest flying squadron in the RAAF and is one of the oldest and most experienced transport squadrons. it was one of the few remaining flying squadrons in the RAAF with its own organic servicing, equipment and administrative personnel.

It was formed at RAAF Base, Richmond, with Lockheed Hudson MKIV aircraft on 15 September 1943, and was re-equipped with Douglas Dakota (DC3) aircraft in 1944 and de Havilland (Canada) Caribou in 1964.

The squadron has an impressive history of operational tasks including the Berlin Airlift, the Japan courier service, and the Malayan emergency action; operations in the South West Pacific, Western Pacific and East Indian Ocean war zones throughout 1944 and 1945 (a 38SQN Dakota was the first RAAF aircraft into Singapore in August 1945, following the Japanese surrender(; the training of ground and air crews and feeder squadron for the re-formed 35 sister squadron during the Vietnam conflict and operations from 1965 to 1975 supporting the Pacific Islands Regiment in Papua New Guinea.

Other tasks included survey/mapping operations for the Indonesian Government in Sumatra, West Irian and the Moluccan Islands; mercy missions in aircraft with International red Cross markings in Portuguese Timor and peace-keeping tasks in aircraft with United Nations markings in India and Pakistan, patrolling the ceasefire line in Kashmir.

As well as the standard transport role, the squadron has been involved in many national commitment tasks in Australia.  These include flood relief, cyclone relief, bush fire patrols, search and rescue, medical mercy flights, fisheries surveillance, rainmaking experiments and grasshopper plaque eradication. Normal squadron operations involve tasks throughout Australia.  However, squadron operations have encompassed Pakistan, Indonesia, Papua New Guinea and New Zealand.

Although the squadron now forms part of the Tactical Transport Group (headquartered in Townsville) the unit operates from Amberly.  Aircraft and crews are maintained at appropriate states of readiness to react in defence of Australia or to assist the civil community in times of need.  The venerable caribou was one of the work horses to the RAAF.