During the Vietnam War, eight Royal Australian Air Force Canberras from No.2 Squadron operated under a memorandum of understanding between the RAAF and the USAF, operating from Phan Rang Air Base in central South Vietnam, attached for the duration to the 35th Tactical Fighter Wing of the United States Air Force. These aircraft would provide crucial additional strike support for US units and were requested because of the aircraft's endurance, bombing accuracy and their ability to operate below the notoriously low cloud bases which often affected this region, if required.

The first RAAF Canberra arrived at Phan Rang on 16th April 1967 having made the two hour transit flight from its base at Butterworth in Malaysia and the eight allocated aircraft would go on to serve with distinction during a four year period operating in support of the Vietnam War. With both RAAF air and ground crews operating at maximum efficiency, the Australian Canberras posted an impressive serviceability rate of 97%, but perhaps even more impressive than this, despite only flying 6% of the USAF 35th TFW's operational sorties during the conflict, they managed to inflict 16% of the damage inflicted. 

By the time No.2 Squadron returned to Australia in 1971, they had become the final operational Canberra unit in the RAAF, but returned with a proud record of both serviceability and operational effectiveness throughout their deployment.