During the last decade, this squadron began to work up on the type at PAF Masroor near Karachi and was assigned to perform a variety of tasks, viz. the training of pilots, the arranging of ground controlled interceptions to train air defence controllers, and aerial target towing for all three services. Due to constitutional problems limiting the number of numbered squadrons the PAF could operate, the F-7Ps were assigned to the very under-strength squadron, which was then operating half a dozen T-33A/RT-33A aircraft. The squadron had for some time operated T-33 and B-57s until the latter's retirement in late 1986. After the induction of F-7P aircraft in August 1990, the squadron's role was expanded to include air defence. At that time the squadron was also split into two separate flights, designated as 'A Flight' and 'B Flight' for F-7P and T-33/RT-33 aircraft, respectively. On 7 July 1993, the T-33/RT-33 aircraft was phased out, and the squadron's role was confined to air defence only. In October 1993, the squadron was renamed the No. 2 Air Superiority Squadron.

Apart from the essential quarterly exercises, the squadron participated in many operational and air defence exercises. They included all the Saffron Bandit exercises, the Armament Competition-96, Inspired Alert exercises with the US Navy, Exercise High Mark-95 and Air-to Air Missile Firing-98. The squadron participated in several inter-service exercises at Kotri in 1991. The squadron won the Non-AI Air Superiority ACES trophy during 1997.