The 7th Special Forces Group was officially formed on May 20, 1960, when it was redesignated from the 77th Special Forces Group. In May 1962, the advance party from Company D, 7th Special Forces Group departed for Fort Gulick, Panama, in the Canal Zone, to establish the 8th Special Forces Group. 8th Group was deactivated in 1972 and the unit redesignated as the 3rd Battalion, 7th Special Forces Group.
Throughout the 1980s, 7th Special Forces Group played a critical advisory role for the El Salvadoran armed forces. The Salvadoran military became a highly trained counter-insurgency force under the tutelage of 7th Group.
The 7th Special Forces Group also played a very important role in preparing the Honduran military to resist and defeat an invasion from Nicaragua. 7th Group also trained the Honduran military in counter-insurgency tactics, which enabled Honduras to defeat the Honduran communist-backed guerrillas. The 7th Special Forces Group also became involved in counter narcotics operations in the Andean Ridge countries of Venezuela, Colombia, Ecuador, Peru, and Bolivia. The goal was not just to stop the flow of drugs into the United States, but to stem the violence that resulted from the drug trade in those countries.
From December 19, 1989 to January 31, 1990, elements of the 7th Special Forces Group participated in Operation Just Cause to restore democracy to Panama. Over the first two weeks, 7th Special Forces Group conducted many reconnaissance and direct action missions in support of the operation.
The 7thSpecial Forces Group maintains a continuous presence throughout Central and South America, conducting Special Operations missions in support of the US Southern Command's Regional Engagement strategy. Since early 2002, the 7th SFG has also deployed almost nonstop for five rotations to Afghanistan in support of Operation Enduring Freedom.