Production ended with 100 Westland Lysander IIIA.TT (TT Mk IIIA later) target tugs, with armament removed, attachments for drogue targets and a winch in the rear cockpit. Many Mk Ills also converted to target tugs. Eventually, four squadrons in Fighter Command flew Westland Lysander target tugs; others were used in India. Sixty-seven Westland Lysander III and IIIA target tugs were transferred to the FAA

From initial Westland Lysander III production, nine diverted to Finnish Air Force and one to Egypt, these being aircraft originally ordered for Estonia but absorbed into RAF contracts. In Finland, Westland Lysanders flew briefly with Llv.14 in the Winter War and then with Llv. 16 in the Continuation War until

It went on to do excellent work in other fields, especially in air/sea rescue and carrying agents and supplies between Britain and Resistance Forces in the Occupied countries. The latter role won the Lysander pilots the nickname of 'The Pimpernels of the Air'.

Three were acquired by the U.S. Army Air Forces, probably for evaluation, and 25 more were assigned to the 8th AF by the RAF for target towing.

Several units operating Lysanders went to France with the British Expeditionary Force in September 1939 and in November a 'Lizzie' shot down the first Luftwaffe Heinkel bomber to fall in BEF territory.

During the evacuation of Dunkirk in May and June of 1940, Lysanders were employed in dropping supplies to beleagured troops defending Calais and made several attacks on German positions. Many Lysanders were lost during this period.