In 1941, three Tank Special Service Squadrons were formed from various cavalry and tank units in the Royal Amoured Corps (RAC). The third of these, C Special Service Squadron (Light) RAC, became the Airborne Light Tank Squadron RAC in July 1942 and soon moved to become part of the Airborne Division on Salisbury Plain.

The war establishment set the personnel complement at 138 men and 19 tanks divided into a squadron headquarters and five troops. Although on conversion it was well below this establishment with 94 men and 7 tanks.

It was equipped with the Tetrarch Light Tank and in September 1942 the squadron was upgraded with 12 Mk VII Tetrarchs, which had been adopted by the British Airborne Forces for air transport on the Hamilcar glider.

When the (1st) Airborne Division, accompanied by the 1st Airborne Reconnaissance Squadron, went to North Africa, the Airborne Light Tank Squadron remained and was transferred to the newly formed 6th Airborne Division in 1943.

The unit was expanded and redesignated as the 6th Airborne Armoured Reconnaisance Regiment in January 1944.

 Officers Commanding Airborne Light Tank Squadron RAC