2 Squadron, Australian Flying Corps (known as 68 Squadron, Royal Flying Corps until January 1918) was formed in Egypt during September 1916. The Squadron arrived in the United Kingdom on 30 January 1917 and, after training, flew to St. Omer, France on 21 September 1917. Operating first DH-5, and later SE-5a aircraft, the Squadron operated from Baizieux and Bellevue aerodromes until the Armistice, handing over its aircraft by the end of February 1919 and arriving in Australia in June 1919, when it was disbanded. The Squadron reformed at Point Cook on 10 January 1922, as a nucleus of two officers and four airmen only, disbanding again in July 1922.

No 2 Squadron reformed at Laverton, Victoria, on 3 May 1937 as a General Reconnaissance Squadron, equipped with two Hawker Demon aircraft, re-equipping with Anson aircraft by the end of 1937. 
In June 1940, the Ansons were replaced by Lockheed Hudsons and the Squadron moved to Darwin from 5 December 1941, also establishing at Penfoei on Timor. The Squadron operated extensively against Japanese shipping and positions, as well as reconnaissance tasks, anti-submarine patrols and supply drops to forces still resisting in Portugese Timor.  During January 1944, the Hudsons were replaced by Beauforts, with both types operated until April. In May 1944 the Squadron was again withdrawn from operations to re-equip with B-25 Mitchell aircraft, conducting anti-shipping operations until moving to Jacquinot Bay in March 1945. The Squadron next moved to Borneo, establishing at Balikpapan just after the cessation of hostilities in August 1945, locating and supplying prisoner-of-war camps and operating in a transport role until November. On 20 December 1945 it began moving to the mainland, reducing to a cadre basis at Laverton until disbanding on 15 May 1946.

On 23 February 1948, Eastern Area Headquarters authorised the renaming of 21 Squadron as 2 (Bomber) Squadron at Amberley, Queensland. The Squadron operated Lincoln aircraft as part of 82 (Bomber) Wing, re-equipping with Canberra aircraft in December 1953. From June 1958 to April 1967, it was stationed at Butterworth, Malaysia. From April 1967 to June 1971, the Squadron was stationed at Phan Rang, Vietnam, returning to Amberley, Queensland, where it was reformed as an aerial-photographic squadron on 9 June 1971.
 
On 1 March 1967, the 'C' Flight of the Squadron was taken over by RAAF Transport Support Flight (TSF) Unit (CA 1372), which was
subsequently disbanded on 31 March 1982.
 
When in Vietnam, the Squadron was under the operational control of the US 7th Air Force, operating as one of the tactical units of the 35th Tactical Fighter Wing. It was awarded the Republic of Vietnam citation medal for distinguished service in Vietnam and the United States Air Force outstanding unit award.

The last operational flight of 2 Squadron was made on 26 July 1982, a radar targeting mission flown at Williamtown. The last flight was a flypast over Brisbane on 30 June 1982; the Squadron remains on the RAAF Order of Battle, but in number only.

Sources:

'Units of the RAAF, A Concise History' Vol. 3, AGPS 1995
Historical agency address
Feb 1948 - Jun 1958 : Amberley, Queensland
Jun 1958 - Apr 1967 : Butterworth, Malaysia
Apr 1967 - Jun 1971 : Phan Rang, Vietnam
Jun 1971 - Jul 1982 : Amberley, Queensland

Previous agency unregistered

3 May 1937 - 15 May 1946: RAAF No 2 Squadron (Laverton)

Superior agency unregistered

April 1967 - June 1971 : US 7th Air Force