Formed as a Bomber Reconnaissance Squadron at RCAF Station Yarmouth, Nova Scotia, Canada on 19 May 1942 with Canso A aircraft, the squadron spent an uneventful eighteen months on East Coast anti-submarine duty. In January 1944 it was lent to RAF Coastal Command and stationed at RAF Reykjavik, Iceland to cover the mid-ocean portion of the North Atlantic shipping route. No. 162 Squadron is notable because it was one of the few squadrons that was not renumbered in the 400-series for overseas deployment as were most RCAF units. The Squadron was disbanded at Sydney, Nova Scotia on 7 August 1945.