The School re-opened on 20 October, 1965. The Founder's Day was held on 26 February, 1966, and for the first time no guests were invited except the Risalpur Cadets. They also could not attend the function due to non-availability of service aircraft. The new C-in-C PAF Air Marshal Nur Khan, another student of Mr Catchpole from RIMC, graced the occasion as the Guest of Honour. In his address, the Chief Guest thanked the Principal for inviting him on the occasion, and particularly mentioned contribution of the Old Sargodhians in the September War. He said: You all here have a fine tradition to live upto... The C-in-C also promised to arrange funds for the construction of a mosque at the School.
The year 1967 was unique in more than one respect. It marked a new era in the history of the School. The name was changed from PAF Public School to PAF College Sargodha. The four houses Tempest, Fury, Attacker and Sabre were also renamed as Younus, Iqbal, Munir and Rafiqui respectively after the names of our great air warriors who laid down their lives in the defence of their motherland during the 1965 War. The name of the School magazine was also changed from "The Sargodhian" to "Shahbaz". A major development was the appointment of the first Pakistani Principal, Mr Abdul Rehman Qureshi. Mr Catchpole left the school after meritorious service of nine and a half years to join Abbotabad Public School as Head of English Department. Now the whole staff of PAF College Sargodha comprised Pakistani teachers. Another transition took place as the Senior Cambridge was replaced by the National System of Education. The School was affiliated with the Board of Intermediate & Secondary Education, Rawalpindi.
In August, 1967, the Lower Topa School was also amalgamated into PAF Public School Sargodha. The Topians were accommodated in the Odeon Block and they formed Alam and Allauddin houses. Alam House was named after the living legend of September 1965 War, Wing Commander Mohammad Mahmood Alam (SJ with Bar) who shot down five Indian Hunters in less than a minute, a feat unprecedented and unsurpassed in the history of air warfare. Allaudin House was named after the great air warrior, Squadron Leader Allauddin Ahmed "Butch"(SJ) who laid down his life in the line of duty on 13 September, 1965 while blasting an Indian ammunition train at Gurdaspur. The first floor of the Odeon Block formed Alam House and the ground floor formed Allauddin House.
The College continued to function as a Public School until in 1973. When the requirement at PAF Academy, Risalpur were raised to the degree level; the College started functioning as a Degree College. The College started imparting full military training to the aviation cadets of both the GD (P) and Engineering branches, which was followed by the flying training phase at PAF Academy , Risalpur. However, in 1985, BSc classes were shifted to Risalpur, and once again only FSc classes were conducted at the College. The institution, despite its changed role, continued grooming young boys into men of splendid character and merit. Mr Rehman Quraishi, the Principal, left no stone unturned in keeping the good name and repute of the institution aloft. He made a brave and successful effort to bring military discipline in consonance with the academic discipline. He left the College in January, 1984. Soon after his departure from Sargodha, he took the charge of Aitchison College, Lahore as Principal. He was followed by Gp Capt C M. Latif, Air Cdre M Akram Lodhi and Gp Capt (later Air Cdre) Fareed Ali Shah respectively. The latter was made the first Commandant of the institution in December, 1987. With the departure of Air Cdre M Akram Lodhi the designation of the Principal was kept in abeyance.