Milltown started life as a ‘Q’ (decoy) site for RAF Lossiemouth, but it was soon suggested that it would be a suitable site for development into a real airfield. On 27th October 1941, construction of its three runways and ‘T2’ and ‘B1’ hangars (one of each) began, though work progressed at a leisurely pace, with expectations of its completion by the end of April 1943. It was intended that the airfield would house a Coastal Command OTU, with a secondary function as an advanced base for Bomber Command, to replace temporary facilities at RAF Peterhead; however, this plan was abandoned, and the site became a satellite station for RAF Lossiemouth.
Improvements to the airfield awaited its transfer to the Royal Navy in July 1946, whereafter it was equipped with a complete Mirror Landing Installation, so that student pilots from Lossiemouth could practice Mirror Aerodrome Dummy Deck Landings (MADDLS). The airfield finally closed for flying in March 1977, to become a radio transmitter site for 81 Signals Unit.
The airfield was used regularly from 14th June 1943 to 1st September 1944 by Wellingtons from 20 OTU, and in December 1943, it was employed for the display of gliders under Operation Tyndall. During September 1944, the Station was handed over to Coastal Command to house the Liberators of 224 Sqn, which was redeployed from South-West England to deal with the U-Boats now operating from Scandinavia. Thereafter, until 2nd June 1945, this squadron operated against U-Boats and shipping in the Norwegian and Danish coastal areas, departing for St Eval in July 1945. The Station was also involved in the 12th November 1944 raid on the Tirpitz by Lancasters of 9 and 617 Sqns, and 20 OTU aircraft used the airfield for ‘circuits and bumps’ during February 1945, whilst runway repair work took place at Lossiemouth.