In 2008 the Army Commander ordered a trial of an Optimized Battle Group (OBG) formed from the 2nd Battalion, The Royal Canadian Regiment (2 RCR) and various attachments and enablers, including engineers, artillery and a reconnaissance squadron. The intent was to form a permanent grouping, vice regrouping sub-units ad-hoc for deployment and training. C Squadron, The Royal Canadian Dragoons (RCD) was resurrected in CFB Gagetown as part of the OBG and formed the reconnaissance squadron which included recce and sniper platoon from 2 RCR. In 2012 the OBG was stood down and the squadron was placed back under command of The Regiment. C Squadron rapidly began the transition from a reconnaissance squadron to a tank squadron.
This transition presented a new challenge as there were few soldiers in the squadron who were qualified on the Leopard C2 at this time. Moreover, shortly after this the Leopard 2 Main Battle Tank was rolled out to replace the aging fleet of Leopard C2s. This further increased the challenge of turning C Squadron into an operational tank squadron, as additional time, man power, and resources were required to not only train soldiers on the tank platform but to convert them on the new Leopard 2 platform. As the only tanks in Eastern Canada, and to foster common trade knowledge, as well as esprit de corps amongst the regular Armoured Corps Regiments residing in Eastern Canada , both officers and soldiers of the 12e Régiment Blindée du Canada were posted to C Squadron and currently comprise roughly thirty percent of its manning.
Today, the squadron is a fully operational Leopard 2 tank squadron which provides direct fire support on the battle field and defeats the enemy through the aggressive use of firepower and battlefield mobility. The Leopard 2 Main Battle Tank, weighing approximately 60 to 70 tonnes, has three variants: the A4, A4M, and A6M. All are armed with a 120mm cannon, coaxially mounted 7.62mm C6 General Purpose Machine Gun, with a second C6 mounted as anti-craft, and 12-16 72mm Multi-Barrel Grenade Dischargers. C Squadron is 2 Canadian Mechanized Brigade Group direct fire capability and countermoves forces, the squadron forms the basis of the combined arms team and also provides training support to 5 Canadian Mechanized Brigade Group as the only bilingual tank squadron.