The squadron gained early fame with its involvement in the Battle of Taranto in 1940, when the Italian Battlefleet in harbour at Taranto was raided; which redefined the use of air power from the sea. The aircraft of the commanding officer was lost, against the crippling of half the Italian fleet. In March 1941, the squadron fought in the Battle of Cape Matapan. The squadron re-equipped in August 1941, with a mixture of Swordfish and Fairey Albacore aircraft, operating from shore bases in support of the North African campaign.