On July 1, 1937, Marine aviation was completely reorganized to conform to Navy requirements, and VB-4M became VMB-2. Still flying the BG-1, the squadron continued to take part in the annual Fleet Exercises, and in December 1940, the squadron began receiving the new Douglas SBD-1, the first mono-plane in Marine Corps service. Arrival of the SBD also marked the first time that the Red Devil insignia was not carried on the squadron's aircraft, even though it was authorized to do so.