On 31 March 1986, No. 79 Squadron was re-formed at RAAF Base Butterworth as a temporary measure to cover part of the period while the RAAF's three fighter squadrons were transitioning from Mirage IIIs to F/A-18 Hornets. The squadron inherited all of No. 3 Squadron's twelve Mirage III fighters and most of its personnel; the remainder of No. 3 Squadron returned to Australia to be re-equipped with Hornets. As well as the Mirage IIIs, the squadron operated a single DHC-4 Caribou transport that was also based at Butterworth.