Constituted in 1920 as the 102nd Squadron (Observation), the squadron was assigned to the 27th Division, allotted to the state of New York, as its divisional aviation.
The unit was organized in November 1921 from the Observation Squadron, New York National Guard, which had been organized on 22 March 1921 at Hempstead, New York, with personnel from K Company, 14th Infantry, New York National Guard.
It was reorganized and federally recognized in November 1922 at Miller Field on Staten Island and redesignated as the 102nd Observation Squadron in January 1923.

During the inter-war years, the 102nd Observation Squadron flew a variety of aircraft but continued to serve as the aerial eyes for the Commander of the 27th Infantry Division, New York National Guard.
One of America’s leading aces of the First World War, George A. Vaughan (9.5 victories) became one of the 102d' Observation Squadron's first commanders.
He eventually became the 27th Division's Air Officer.
In 1929, in a reorganization of the Army, it was relieved from permanent assignment to the 27th Division but remained attached to it for command and control purposes.
In October 1933 it was assigned to an observation group for mobilization in case of war.

Its operations were primarily air transportation and aircraft repair and maintenance.
However, squadron elements were called up periodically by the state of New York to perform emergency duties that included reconnaissance for the Treasury Department of vessels conducting illegal-liquor trade off the New York-New Jersey coast in the 1920s; support of flood relief efforts in Vermont 6–16 November 1927; aid to civil authorities during a prison break from the maximum security Auburn Prison, 11–12 December 1930; and flood relief efforts in upstate New York 11–13 July 1935.

The squadron conducted summer training annually at Pine Camp, New York, during the years 1921–40 where it generally supported the training of the 52nd Field Artillery Brigade, and performed other training at Miller Field and at Mitchel Field on Long Island.

In 1936 it was consolidated with the demobilized 102nd Aero Squadron.
Constituted in 1920 as the 102nd Squadron (Observation), the squadron was assigned to the 27th Division, allotted to the state of New York, as its divisional aviation. The unit was organized in November 1921 from the Observation Squadron, New York National Guard, which had been organized on 22 March 1921 at Hempstead, New York, with personnel from K Company, 14th Infantry, New York National Guard. It was reorganized and federally recognized in November 1922 at Miller Field on Staten Island and redesignated as the 102nd Observation Squadron in January 1923.
During the inter-war years, the 102nd Observation Squadron flew a variety of aircraft but continued to serve as the aerial eyes for the Commander of the 27th Infantry Division, New York National Guard. One of America’s leading aces of the First World War, George A. Vaughan (9.5 victories) became one of the 102d' Observation Squadron's first commanders. He eventually became the 27th Division's Air Officer. In 1929, in a reorganization of the Army, it was relieved from permanent assignment to the 27th Division but remained attached to it for command and control purposes. In October 1933 it was assigned to an observation group for mobilization in case of war.
Its operations were primarily air transportation and aircraft repair and maintenance. However, squadron elements were called up periodically by the state of New York to perform emergency duties that included reconnaissance for the Treasury Department of vessels conducting illegal-liquor trade off the New York-New Jersey coast in the 1920s; support of flood relief efforts in Vermont 6–16 November 1927; aid to civil authorities during a prison break from the maximum security Auburn Prison, 11–12 December 1930; and flood relief efforts in upstate New York 11–13 July 1935.
The squadron conducted summer training annually at Pine Camp, New York, during the years 1921–40 where it generally supported the training of the 52nd Field Artillery Brigade, and performed other training at Miller Field and at Mitchel Field on Long Island.
In 1936 it was consolidated with the demobilized 102nd Aero Squadron.
102d Rescue Squadron