On 19 April 1944, Erprobungskommando 262 was formed at Lechfeld just south of Augsburg, as a test unit (Jäger Erprobungskommando Thierfelder, commanded by Hauptmann Werner Thierfelder) to introduce the 262 into service and train a corps of pilots to fly it. On 26 July 1944, Leutnant Alfred Schreiber with the 262 A-1a W.Nr. 130 017 damaged a Mosquito reconnaissance aircraft of No. 540 Squadron RAF PR Squadron, which was allegedly lost in a crash upon landing at an air base in Italy. Other sources state the aircraft was damaged during evasive manoeuvres and escaped.

Major Walter Nowotny was assigned as commander after the death of Thierfelder in July 1944, and the unit redesignated Kommando Nowotny. Essentially a trials and development unit, it mounted the world's first jet fighter operations. Trials continued slowly, with initial operational missions against the Allies in August 1944, and the unit made claims for 19 Allied aircraft in exchange of six Me 262s lost.

Despite orders to stay grounded, Nowotny chose to fly a mission against an enemy bomber formation flying some 9,100 m (30,000 ft) above, on 8 November 1944. He claimed two P-51Ds destroyed before suffering engine failure at high altitude. Then, while diving and trying to restart his engines, he was attacked by other Mustangs, forced to bail out, and died. The Kommando was then withdrawn for further flight training and a revision of combat tactics to optimise the 262's strengths.

On 26 November 1944, a Me 262A-2a Sturmvogel of III.Gruppe/KG 51 'Edelweiß' based at Rheine-Hopsten Air Base near Osnabrück was the first confirmed ground-to-air kill of a jet combat aircraft. The 262 was shot down by a Bofors gun of B.11 Detachment of 2875 Squadron RAF Regiment at the RAF forward airfield of Helmond, near Eindhoven. Others were lost to ground fire on 17 and 18 December when the same airfield was attacked at intervals by a total of 18 Me 262s and the guns of 2873 and 2875 Squadrons RAF Regiment damaged several, causing at least two to crash within a few miles of the airfield. In February 1945, a B.6 gun detachment of 2809 Squadron RAF Regiment shot down another Me 262 over the airfield of Volkel. The final appearance of 262s over Volkel was in 1945 when yet another fell to 2809's guns.

By January 1945, Jagdgeschwader 7 (JG 7) had been formed as a pure jet fighter wing, partly based at Parchim although it was several weeks before it was operational. In the meantime, a bomber unit—I Gruppe, Kampfgeschwader 54 (KG(J) 54)—redesignated as such on 1 October 1944 through being re-equipped with, and trained to use the Me 262A-2a fighter-bomber for use in a ground-attack role. However, the unit lost 12 jets in action in two weeks for minimal returns. Jagdverband 44 (JV 44) was another Me 262 fighter unit, of squadron (Staffel) size given the low numbers of available personnel, formed in February 1945 by Lieutenant General Adolf Galland, who had recently been dismissed as Inspector of Fighters. Galland was able to draw into the unit many of the most experienced and decorated Luftwaffe fighter pilots from other units grounded by lack of fuel.

During March, Me 262 fighter units were able, for the first time, to mount large-scale attacks on Allied bomber formations. On 18 March 1945, thirty-seven Me 262s of JG 7 intercepted a force of 1,221 bombers and 632 escorting fighters. They shot down 12 bombers and one fighter for the loss of three Me 262s. Although a 4:1 ratio was exactly what the Luftwaffe would have needed to make an impact on the war, the absolute scale of their success was minor, as it represented only 1% of the attacking force.

In the last days of the war, Me 262s from JG 7 and other units were committed in ground assault missions, in an attempt to support German troops fighting Red Army forces. Just south of Berlin, halfway between Spremberg and the German capital, Wehrmacht's 9th Army (with elements from the 12 Army and 4th Panzer Army) was assaulting the Red Army's 1st Ukrainian Front. To support this attack, on 24 April, JG 7 dispatched thirty-one Me 262s on a strafing mission in the Cottbus-Bautzen area. Luftwaffe pilots claimed six lorries and seven Soviet aircraft, but three German jets were lost. On the evening of 27 April, thirty-six Me 262s from JG 7, III.KG(J)6 and KJ(J)54 were sent against Soviet forces that were attacking German troops in the forests north-east of Baruth. They succeeded in strafing 65 Soviet lorries, after which the Me 262s intercepted low flying IL-2 Sturmoviks searching for German tanks. The jet pilots claimed six Sturmoviks for the loss of three Messerschmitts. During operations between 28 April and 1 May Soviet fighters and ground fire downed at least ten more Me 262s from JG 7. However, JG 7 managed to keep its jets operational until the end of the war. And on the 8th of May, at around 4:00 p.m. Oblt. Fritz Stehle of 2./JG 7, while flying a Me 262 on the Erzgebirge, attacked a formation of Soviet aircraft. He claimed a Yakovlev Yak-9, but the plane shot down was probably a P-39 Airacobra. Soviet records show that they lost two Airacobras, one of them probably downed by Stehle, who would thus have scored the last Luftwaffe air victory of the war.

Several two-seat trainer variants of the Me 262, the Me 262 B-1a, had been adapted through the Umrüst-Bausatz 1 factory refit package as night fighters, complete with on-board FuG 218 Neptun high-VHF band radar, using Hirschgeweih ("stag's antlers") antennae with a set of dipole elements shorter than the Lichtenstein SN-2 had used, as the B-1a/U1 version. Serving with 10. Staffel Nachtjagdgeschwader 11, near Berlin, these few aircraft (alongside several single-seat examples) accounted for most of the 13 Mosquitoes lost over Berlin in the first three months of 1945. Intercepts were generally or entirely made using Wilde Sau methods, rather than AI radar-controlled interception. As the two-seat trainer was largely unavailable, many pilots made their first jet flight in a single-seater without an instructor.

Despite its deficiencies, the Me 262 clearly marked the beginning of the end of piston-engined aircraft as effective fighting machines. Once airborne, it could accelerate to speeds over 850 km/h (530 mph), about 150 km/h (93 mph) faster than any Allied fighter operational in the European Theater of Operations.

The Me 262's top ace was probably Hauptmann Franz Schall with 17 kills, including six four-engine bombers and ten P-51 Mustang fighters, although fighter ace Oberleutnant Kurt Welter claimed 25 Mosquitos and two four-engine bombers shot down by night and two further Mosquitos by day. Most of Welter's claimed night kills were achieved by eye, even though Welter had tested a prototype Me 262 fitted with FuG 218 Neptun radar. Another candidate for top ace on the aircraft was Oberstleutnant Heinrich Bär, who is credited with 16 enemy aircraft while flying Me262's out of his total of 240 aircraft shot down.

Sources:
Gunston, Bill & Wood, Tony - Hitler's Luftwaffe, 1977, Salamander Books Ltd., London
Wikipedia - ME 262