Formed at Laverton on 8 June 1942 as No. 1 Photo Reconnaissance Unit, with eight officers and thirty-five airmen under the command of Squadron Leader L. W. Law. Initial training in navigation and aerial photography was carried out at Laverton until 12 August 1942 when the unit began moving to Hughes Airfield, Northern Territory to prepare for operational service. During the war, one member of No. 87 Squadron was made a Member of the Order of the British Empire, four received the Distinguished Flying Cross and seven were Mentioned in Dispatches.