As a result of the reorganization, CAEWW-12, Detachment 59 was commissioned as Carrier Airborne Early Warning Squadron 123 on 1 April 1967, at NAS Norfolk, Virginia. The commissioning date of 1 April 1967, makes VAW-123 one of the oldest VAW Squadron in the United States Navy. In June 1967 VAW-123 set sail aboard for Vietnam, thus becoming the first East Coast VAW squadron to go to war. On 29 July 1967, while serving in the Gulf of Tonkin, USS "Forrestal" suffered an onboard fire resulting in the death of 134 crew members, 161 injured, 21 aircraft damaged or destroyed and millions of dollars in damage to the ship. USS "Forrestal" returned to Norfolk with VAW-123 and the rest of the ship's crew and Airwing. VAW-123 had no loss of any personnel or have any personnel injured in the fire but some of the squadrons E-2A aircraft had very minor damage from the fire and explosions aboard the ship.