Heightened tensions in the Persian Gulf during the fall of 1998 brought the Dragons back on a no-notice deployment as the Aviation Combat Element (ACE) for the 31st Marine Expeditionary Unit. They participated in Operation Desert Fox in the Persian Gulf and Kuwait from November 1998 through February 1999. When the squadron returned, they had a short break before deploying again. This time, the Marines helped end a bloody civil war on the small island country of East Timor during Operation Stabilise in October 1999 and again during January and February 2000.