In late 1996 the 111th started to retire their ADF F-16s to AMARC. To replace these aircraft the squadron received the block 25 F-16C/D Fighting Falcon. Transition started in September 1996 and was completed by February 1997. This brought a change in role which officially happened in October 1998. The role went from air-to-air to an air-to-ground mission. After returning from an Operation Southern Watch mission at Prince Sultan Air Base, Saudi Arabia in October 2000, the squadron added Precision Guided Munitions to its arsenal.