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The second HMAS Albatross is the Fleet Air Arm's base near Nowra in New South Wales, about 2 hours drive south of Sydney.

Albatross is the home of the RAN's entire air fleet, which currently consists of four flying squadrons:

• 723 Squadron - Eurocopter Ecureuil and Agusta A109E^[1]
• 805 Squadron - Kaman Seasprite
• 816 Squadron - Sikorsky Seahawk
• 817 Squadron - Westland Sea King

The airfield at Nowra was originally used by squadrons of the Royal Australian Air Force when it opened in 1942. In 1944, the need for the Fleet Air Arm of the Royal Navy for shore bases led to RAAF Nowra, due to its proximity to Jervis Bay, being transferred to the RN, being renamed HMS Nabbington. In this role the base supported the British Pacific Fleet's aircraft carriers.

In 1947, the RAN's own Fleet Air Arm was formed, and the Nowra airfield was chosen to be its main shore base. HMAS Albatross was commissioned on August 31, 1948, with its first squadrons disembarking from the new Australian aircraft carrier HMAS Sydney in May 1949. Over the course of the next decades, the RAN purchased larger, faster and more capable aircraft, which led to the facilities at Albatross being expanded - workshops and test facilities for jets were installed following the entry into service of the De Havilland Sea Venom in 1955, while a new control tower was built in 1958. The purchase of A-4 Skyhawks and S-2 Trackers with advanced avionics led to more facilities being installed to service them.

The Skyhawk and Tracker squadrons flew from the aircraft carrier HMAS Melbourne until the time it was decommissioned on 30 June 1982. This signalled the beginning of the end of the fleet air arm's front line fixed wing capabilities, and also a scaling back of activities at Albatross.

Today, Albatross serves as home base for the four helicopter squadrons of the Fleet Air Arm, and for the Navy Aviation Group, which coordinates all of the RAN's aviation activities. Albatross also has a number of lodger units:

• Naval Weather and Oceanographic Centre (NWOC)
• Training Authority – Aviation
• Naval Aviation Systems Program Office (NASPO)
• Australian Joint Acoustic Analysis Centre (AJACC)
• RAN Tactical Electronic Warfare Support Section (RANTEWSS)
• Aircraft Maintenance and Flight Trials Unit (AMAFTU)
• Army Parachute Training School (PTS)
• T. S. Shoalhaven (Navy cadet unit)

In addition, Albatross is the home of the Fleet Air Arm Museum and the Royal Australian Navy Historic Flight.

Since 1986 there have been Learjet target tugs based at Albatross, operated by civilian companies under contract to the RAN. The first company was Lloyd Aviation, then from 1990 to 1996 Fleet Support (a company later bought by National Jet Systems) and from 1996 until the present Pel-Air. Each company has used four to five Learjet 35/36 series aircraft to provide the services^[2]; present incumbent Pel-Air also uses IAI Westwinds for non target-towing support operations.

The naval base had the unusual distinction of being shared by a small civilian passenger terminal, which at various times was utilised by the Masling and later Hazelton Airlines companies flying small propeller driven aircraft on scheduled services for the Nowra community. Until 2004, the Royal Australian Navy Gliding Association (RANGA) also operated from the runways at Albatross with a small fleet of gliders used by both Navy and civilian members.

• HMAS Albatross website