At the end of the war, No. 3 Squadron returned to Australia and disbanded at Point Cook on 30 July 1946. It was re-formed at RAAF Base Fairbairn in Canberra in early 1948 when No. 4 Squadron RAAF was renumbered as No. 3 Squadron. Equipped with Mustangs, CAC Wirraways and Austers, the squadron served briefly as a tactical reconnaissance and close support squadron before disbanding again in 1953. The squadron re-formed on 1 March 1956 at RAAF Base Williamtown, New South Wales. It operated CA-27 Sabres out of Butterworth, Malaya, from 1958 engaging in warlike operations associated with the Malayan Emergency and Konfrontasi.