In 1942, Naval Air Station Atlantic City was built on 2,444 acres (9.89 km²) of leased private land in Egg Harbor Township, New Jersey.  Its purpose was to train various carrier air groups consisting of fighter, bomber and torpedo squadrons.  In August 1943, NAS Atlantic City changed its mission to strictly fighter training, consisting of low and high altitude gunnery tactics, field carrier landing practice (FCLP), carrier qualifications (CQ), bombing, formation tactics, fighter direction, night operations and an associated ground school curriculum.

NAS Atlantic City was decommissioned in June 1958 and transferred to the Airways Modernization Board (AMB), later taken over by the Federal Aviation Agency.  In November 1958 the AMB lease was transferred to the Federal Aviation Agency (FAA) for $55,000. As Atlantic City retained 84 of the 4,312 acres, the FAA expanded the former U.S. Navy land parcel to about 5,000 acres (20 km²) and established the National Aviation Facilities Experimental Center research facility that eventually became the William J. Hughes Technical Center.

The South Jersey Transportation Authority (SJTA) initially leased portions of the airport from the FAA and now serves as the airport owner and operator of the facility.  

When the Navy departed in 1958, the 119th Fighter Squadron of the New Jersey Air National Guard relocated to Atlantic City from their former base at Newark International Airport with their F-84F Thunderstreak aircraft, establishing an Air National Guard base on the site of the former naval air station.  The current 177th Fighter Wing of the New Jersey Air National Guard has been at this location ever since.

During the 1960s and early 1970s, the active duty U.S. Air Force’s 95th Fighter Interceptor Squadron, stationed at Dover AFB, Delaware, maintained an Operating Location and Alert Detachment of F-106 Delta Darts at Atlantic City ANGB on 24-hour alert.  After the 177th Fighter Wing reequipped with the F-106 in 1973, the 177th took on the air defence alert mission. Numerous airlines have attempted profitable scheduled service from ACY since the early 1980s, including American International Airways, US Airways, Continental Airlines, United, and WestJet.  Spirit is currently the sole tenant at the airport, as of 2023.