The squadron is best known for its actions during World War II, most notably the Battle of Cape St. George, under the command of then-Commodore Arleigh Burke.

Less USS Aulick, Destroyer Squadron 23 assumed duty on patrol and escort in the Southwest Pacific.

Destroyer Squadron 23 earned its reputation—and a Presidential Unit Citation—under its second commodore, Captain Arleigh Burke, who assumed command on 23 October 1943.

The squadron was rededicated as the "Little Beavers" on 12 December 1956, by Rear Admiral Chester Wood, Commander Cruiser Destroyer Force, U.S. Pacific Fleet in ceremonies at Long Beach, California.

The mascot of Destroyer Squadron 23 was Little Beaver, a character made famous by Fred Harman's Red Ryder cartoon strip.

This sentiment led to an illustrated painting by a crewman named James Bowler on the side of one of USS Claxton's torpedo tubes.