The 25th Squadron (Bombardment) was organized on 1 October 1921 at Mitchel Field, New York, although it is not clear whether it was equipped before moving to France Field in the Panama Canal Zone in April 1922, where the Panama Canal Department assigned it to the 6th Composite Group. It flew various biplane bombers to defend the Panama Canal. In April 1924, the squadron, now the 25th Bombardment Squadron, was consolidated with the World War I unit. During the 1920s and early 1930s, it participated in various goodwill missions in Latin America, including flights to El Salvador and Nicaragua, from 13 to 19 May 1935; to Guatemala, from 8 to 11 February 1938, and again to El Salvador, from 19 to 22 April 1938. The squadron also flew mercy mission to Chile following the devastating 1939 Chillán earthquake in January and February 1939.