The squadron was re-established at Williamtown on 11 January 1960. It was initially equipped with Vampires, but received more modern CAC Sabres in May 1961. The squadron later formed two aerobatic teams called the Red Diamonds and Black Panthers which took part in air shows and other public events. No. 76 Squadron was re-equipped again with Mirage III fighters in either 1966 or 1968. In 1968 the squadron made a deployment to Darwin to bolster the town's air defences. It continued to use its Mirage IIIs for air defence and ground attack roles until the squadron was disbanded on 24 August 1973 as part of a reduction in the size of the RAAF following Australia's withdrawal from the Vietnam War.