A squad with the flamethrower specialization is very effective in close combat.

Flaming Death: When a flamethrower squad attacks an adjacent enemy unit, the attacking squad gains +2 firepower, and the target unit receives –5 cover (to a minimum of 0). (Note that armor is not affected by this penalty.)
Remember that any attack against an adjacent unit is considered a close-range attack, with the black attack dice scoring successes on results of “4,” “5,” and “6.”

Does a flamethrower get +2 attack dice when being assaulted?

No.

How does a flamethrower squad’s Flaming Death ability work when the squad is adjacent to an enemy unit and it combines fire with other friendly units that are at normal range?

The flamethrower squad may still use its Flaming Death ability. It gains a +2 firepower bonus and the target unit receives -5 cover. The attack against the adjacent unit is still considered to be at normal range, with attack dice scoring successes on results of “5” and “6.”

 

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