With the squadron's conversion from the obsolescent F-80-day fighters to the all-weather/day/night F-86D Sabre Interceptor in 1957, plans were made to reorganize the 600-man Augmented Squadron to an Air Defense Command group structure. On 1 July 1957, the 111th was authorized to expand to a group level, and the 147th Fighter-Interceptor Group was established by the National Guard Bureau. The 111th FIS becoming the group's flying squadron. Other squadrons assigned into the group were the 147th Headquarters, 147th Material Squadron (Maintenance), 147th Combat Support Squadron, and the 147th USAF Dispensary. In June 1959 the squadron traded their F-86Ds for the upgraded F-86L Sabre Interceptor with uprated afterburning engines and new electronics.