Ballykelly airbase played an important part in World War II. RAF Ballykelly opened in June 1941 as an airfield for RAF Coastal Command. Aircraft called Liberators which carried out anti-submarine patrols were based there. At various times the Liberator aircraft flew from Ballykelly in the fight against the U-boats (German submarines). They covered a wide area ranging from the Bay of Biscay to northern Norway.

By the end of the war, Ballykelly squadrons had been responsible for sinking twelve U-boats.

It closed in 1971 when the site was handed over to the British Army as Shackleton Barracks. The Barracks were used until 2008 when they closed.