The 3rd Reconnaissance Squadron, later designated the 38th Cavalry Reconnaissance Squadron (Mechanized), was activated with a cadre of 400 men from the 113th Cavalry Regiment, 1st Cavalry Division, 2nd Armored Division and the Cavalry Replacement Training Center on September 12, 1942 at activated at Fort Bliss and later moved to Camp Maxay, Texas. On 7 November 1943, the Squadron shipped off to New Jersey and onwards to Exeter, Devon, England, where it joined the 102nd Cavalry Group for the invasion into Normandy.
On the 12 June 1944 (6 days after D-day), the Squadron landed on Omaha Beach in preparation to take its place in the V Corps line of battle. The Squadron was attached to the 1st U.S. Infantry Division, which had driven a salient toward Chaumont, then Tinchebray. The Squadron quickly moved through the French country side and with exceptionally good fortune in liberating German occupied towns along the way to Paris; the Squadron earned the nickname "The Lucky 38th".
On August 25, the Squadron push vigorously to the north and was the first American unit into Paris. After liberating Paris, the Squadron continued to pursue the retreating German forces and made their way to the Belgian boarder. On 1 September, the Squadron marched to Villeneuve and began a series of missions that included securing bridgeheads, screening missions, flank security, patrols along the Siegfried Line and preparation for the German Winter offensive. On 16 December 1944, the Squadron conducted a major counter offensive know as the Battle of the Ardennes against the German Sixth Panzer division in Monschau. For the actions of the brave men of the 38th during the battle, the Squadron was awarded the Presidential Unit Citation.
The Squadron continued to move forward into Germany through Fritzlar to Merxhausen near Kassel. From 11th April to 19th April, the Squadron protected the flank of the 2nd Division as it drove on Leipzig. The remainder of their time was spent in searching woods in the rear of the front lines for German soldiers and guerrilla bands. On V-E Day the Squadron advanced into Czechoslovakia at Eger.
After WWII the Squadron was demobilized and later designated the 38th Reconnaissance Regiment.
On 24 June 2010 the 2nd Squadron, 38th Cavalry Regiment (Reconnaissance and Surveillance) was activated under the 504th Battlefield Surveillance Brigade, III Corps at Fort Hood, TX. On 28 June 2011, the Squadron deployed to the Spin Boldak district of Kandahar Province, Afghanistan conducting security and interdiction missions along the Afghanistan-Pakistan border. The Squadron redeployed back to Fort Hood, TX on 30 May 2012 and today, continues to prepare for the next fight, embodying the unit motto “ALWAYS IN FRONT”.