 1987 also marked the squadron's upgrade from the KC-135A to the re-engined KC-135R

In December 1989, the squadron flew missions during Operation Just Cause, the American operation to oust Manuel Noriega from power in Panama.The efforts of the 905th enabled aeromedical evacuation missions to be flown directly to medical facilities in the United States from Panama.The squadron provided personnel and aircraft for air refueling operations in Southwest Asia from 13 August 1990 to 9 April 1991.