In February 1941 the squadron was transferred to Greece to support Greek resistance to the Italian invasion. It was used to attack targets in Albania and Italy, and also for supply dropping to Greek troops. Following the German invasion of Greece in April 1941, the squadron's Wellingtons were used to carry out attacks on Bulgaria, but by 17 April the German advance forced the squadron to be evacuated back to Egypt. On 1 May 1941, a detachment of eight Wellingtons from 37 Squadron were deployed to RAF Aqir in Palestine as a response to Iraqi threats to the British airbase at Habbaniya, and the next day took part in bombing raids against Iraqi positions outside Habbaniya in the opening moves of the Anglo-Iraqi War. The detachment moved to Shaibah in Iraq later that day, and continued to raid Iraqi positions and airfields for the next few days. The remainder of the squadron, meanwhile, continued to fly raids against German and Italian airfields in southern Greece and the Dodecanese. The Iraqi-based detachment returned to Egypt on 12 May. Following the German invasion of Crete, the squadron flew in support of the defenders of the island until its fall. From 18 June the RAF's Egypt-based Wellington squadrons, including 37, carried out attacks on Aleppo and Beirut as part of the Syria–Lebanon campaign. The squadron continued to attack targets in Greece and North Africa (such as ports like Benghazi and Derna) and from November 1941, operated increasingly against airfields in preparation for Operation Crusader.