The 163rd Fighter Squadron is a unit of the Indiana Air National Guard's 122nd Fighter Wing, located at Fort Wayne Air National Guard Base, Indiana. The 163rd is currently transitioning from the A-10 Thunderbolt II to the F-16 Fighting Falcon.

The squadron was first activated as the 365th Fighter Squadron on 1 January 1943 at Richmond Army Air Base, Virginia as one of the original squadrons of the 358th Fighter Group. The squadron initially began training with the Curtiss P-40 Warhawk. Later that year, the unit replaced its Warhawks with the Republic P-47 Thunderbolt, which it flew for the remainder of the war. The squadron left the United States in September 1943.

The 365th arrived in England during October 1943, where it began operations with Eighth Air Force on 20 December 1943, but was transferred to Ninth Air Force in February 1944. The unit engaged primarily in missions escorting bombers attacking targets on the continent of Europe until April 1944. The squadron then dive bombed marshalling yards and airfields and attacked enemy communications during April and May from its new station, an advanced landing ground at RAF High Halden, to help prepare for the invasion of Normandy.

The squadron escorted troop carrier formations on D Day and the following day as the formations dropped paratroopers on the Cotentin Peninsula. For the remainder of June, it attacked rail lines, troop concentrations, bridges and transport. The squadron moved to France in July and, from its base at Cretteville, took part in operations that resulted in the Allied breakthrough at St Lo. The squadron continued to fly escort, interdiction and close air support missions during the Allied drive across France and into Germany.

The squadron received a Distinguished Unit Citation for its actions between 24 December 1944 and 2 January 1945, when it supported Seventh Army attacking railroads and rolling stock, other vehicles and enemy artillery formations. It also destroyed numerous Luftwaffe fighters while defending against Operation Bodenplatte, an attack concentrating on forward Allied air bases in an attempt by the Luftwaffe to attain air superiority in the area of the Battle of the Bulge. In March, the squadron attacked German forces attempting to withdraw across the Rhine River, destroying motor transport and hampering the withdrawal efforts, earning a second Distinguished Unit Citation. The following month, the squadron attacked enemy airfields near Munich and Ingolstadt, engaging aircraft and supporting the advance of ground forces in the area, earning a third award of the Distinguished Unit Citation. The squadron was also awarded the French Croix de Guerre with Palm by the Government of France for its assistance in the liberation of France. The squadron was credited with the destruction of 27 enemy aircraft during the war.

The wartime 365th Fighter Squadron was re-designated as the 163rd Fighter Squadron, and was allotted to the Indiana Air National Guard, on 24 May 1946. It was organized at Stout Field, Indianapolis, Indiana and was extended federal recognition on 9 December 1946 by the National Guard Bureau. The 163rd Fighter Squadron was bestowed the lineage, history, honors, and colors of the 365th Fighter Squadron. The squadron was assigned to the 122d Fighter Group, Indiana Air National Guard and equipped with F-51D Mustang fighters.

The 163rd and the 113th Fighter Squadron at Baer Field, Fort Wayne, were the operational squadrons of the 122nd Fighter Group. Its mission was the air defense of Indiana. The 113th flew training missions primarily over the northern part of Indiana, while the 163rd operated from Indianapolis south to the Ohio River border with Kentucky.

During the postwar years, the Air National Guard was almost like a flying country club and a pilot could often show up at the field, check out an aircraft and go flying. However, these units also had regular military exercises that kept up proficiency and in gunnery and bombing contests they would often score better than full-time USAF units.