As the Rockwell B-1B long-range strategic bomber entered service, the FB-111As still remaining with SAC were converted into tactical configuration under the designation F-111G. Under this program, the FB-111A's short range attack missile (SRAM) system for stand-off nuclear delivery was retained, and a conventional weapons release system was installed to provide for dual-role capability. Other improvements included the installation of a Have Quick UHF radio and a new ECM system.
The first two F-111G conversions were completed in early 1989. The program was originally scheduled to continue at a rate of approximately twelve conversions per year. The first F-111Gs and FB-111As were transferred from SAC to TAC between June and December 1990. Deployment in Europe was considered for a brief time, but the F-111G aircraft were added instead to the 27th TFW stationed at Cannon AFB, NM, (augmenting the wing's F-111Ds) following the 1990-91 disbandment of SAC's 509th BW at Pease AFB, NH, and the 380th BW at Plattsburgh AFB, NY.
The F-111G was used primarily for training, but was scheduled to be supplanted in the training role by the F-111E. This made the F-111G surplus to USAF requirements, and the F-111G began to be transferred to AMARC for storage in 1991. The last example reached AMARC by 1993. On June 29, 1993, Australia announced that it was going to purchase 15 of these surplus F-111G aircraft to help make up for attrition in their F-111C fleet. Before delivery, the F-111G were brought up to F-111C standards, and the first of these entered service at RAAF Amberley in late 1994, joining 18 F-111Cs and four RF-111Cs already in RAAF service.