- "Medpac Four to Group Leader . . . I have a visual on the Imperial Task Force . . . repeat . . . a visual on the Imperial Task Force."
- ―Medpac Four
When the dreadnaught New Hope encountered support fighters from an Imperial Star Destroyer, the Hope had only one X-wing squadron, under the command of Group Leader Han Solo, assigned to it. To supplement this attack group, a second and third squadron were quickly thrown together from starfighters on Milagro's surface: secondhand Y-wings, X-wings, and two new B-wings. These two squadrons were entirely composed of personnel from the hospital ship Mercy since New Republic forces so desperately lacked manpower.
Circumstances being too rushed for the new squadrons to be assigned call signs, each was allowed to choose its own. Squadron two, as a testament to the fact that the majority of its pilots were wounded patients, and to the personal amusement of General Solo, gave itself the appropriate moniker "Medpac Squadron".
Medpac Squadron played an active role in the Battle of Milagro, forming the vanguard of the three squadrons' attack. Its pilots were the first to report enemy fighters attacking the group and were the first of the group to sight the Imperial Star Destroyer itself. Ordered by Solo to focus on the Destroyer and to avoid dogfights against pursuing TIE Fighters, Medpac Squadron suffered the brunt of the initial strike, losing two X-wings near the outset and an unknown number of other starfighters over the course of the battle.