In 1938, the Australian Commonwealth Naval Board (ACNB) identified the need for a general purpose 'local defence vessel' capable of both anti-submarine and mine-warfare duties, while easy to construct and operate.

[5] The need for locally built 'all-rounder' vessels at the start of World War II saw the "Australian Minesweepers" (designated as such to hide their anti-submarine capability, but popularly referred to as "corvettes") approved in September 1939, with 60 constructed during the course of the war: 36 ordered by the RAN, 20 (including Whyalla) ordered by the British Admiralty but manned and commissioned as RAN vessels, and 4 for the Royal Indian Navy.

In 1942, the corvette worked supporting convoys off the south eastern Australian coast, and was in Sydney Harbour during the Japanese midget submarine attack of 31 May 1942.

[9] On 2 January 1943, Whyalla and two small Australian survey ships, Stella and Polaris, were attacked by Japanese dive-bombers while in McLaren Harbour, Cape Nelson, New Guinea.

[9] Whyalla spent the rest of the war performing minesweeping, escort, and anti-submarine duties with the British Pacific Fleet, as well as participating in the occupation of Okinawa from March to May 1944, and entering a short refit in June 1944.

[9] Following the conclusion of World War II, Whyalla spent a short time operating in Hong Kong before returning to Brisbane in October 1945.

[9] The corvette was located in her launching slipway until April 1987, when she was moved 2 kilometres (1.2 mi) inland to become the centrepiece of the Whyalla Maritime Museum, which opened on 29 October 1988.