 In May 1972, the squadron participated in exercise Exotic Dancer V, designed to test multiservice operations under a unified command organization.VA-204 received the CNO annual Safety Award for 1973, in recognition of over 5,000 hours of accident free flying for the year.In 1975, the squadron won the F. Trubee Davison Award as the "Best Tailhook Squadron in the Naval Reserve"

The squadron was directed to cease flight operations in December 1977 and transfer all A-4 aircraft in custody.