- "Beautiful Butterfly, there to protect the image of it."
- ― Cocoon Motto
The Cocoon Squadron was a former Usean Allied Forces unit assigned to the Usean 2nd Fleet's flagship aircraft carrier, Arquette. Cocoon accompanied the 2nd Fleet in joining the Usean Rebel Forces during the Usean coup d'état. The unit was led by Camilla Almeida.
On July 7, 1998, Cocoon Squadron was assigned to escort the 2nd Fleet in the vicinity of the Skully Islands in order to strike a lethal blow to the Allied Forces. They were intercepted by the Scarface Squadron, who sunk the entire 2nd Fleet, including the Arquette.
Cocoon then engaged Scarface in a dogfight, which was quickly interrupted by a mysterious red aircraft. While the aircraft engaged Scarface, Cocoon took the opportunity to regroup. After the red aircraft retreated due to battle damage, Cocoon returned for a final confrontation with Scarface, with the latter emerging victorious.
The fates of the squadron's members after the battle are uncertain.
- Cocoon Squadron's emblem concept - featuring a butterfly - was later seen in Ace Combat Infinity as the emblem of the Papillon Project. The emblem and project are associated with the Butterfly Master, whose real name references that of the Cocoon Squadron leader, Camilla Almeida.