He was awarded the Silver Star for conspicuous gallantry in action against the enemy while serving as acting gunnery sergeant of Company A, 1st Battalion, 1st Marines on Okinawa on May 3, 1945.

He remained inactive until October 1950, when ordered to active duty at the Marine Corps Base, Camp Pendleton in California, where he served as a company first sergeant with the 4th Infantry Training Battalion.

While participating in a company raid on an enemy outpost, Technical Sergeant Dailey unhesitatingly volunteered to lead a rescue squad in an attempt to recover four Marine casualties who were discovered lying a few feet from a strongly fortified enemy-held trench.

Moving quickly to his objective, he skillfully maneuvered his squad into a position from which he was able to rescue the casualties and, despite an intense hail of enemy machine-gun, grenade and automatic-weapons fire, carried out a further search of the surrounding terrain until he located and recovered two other wounded Marines.

By his exceptional courage, outstanding leadership and daring initiative in the face of continuous hostile fire, Technical Sergeant Dailey was directly instrumental in saving the lives of six wounded Marines and upheld the highest traditions of the United States Naval Service.

Realizing that more stretchers were needed, he crossed the hazardous area and commandeered Marines from a reserve unit to aid his company and, leading them through lanes of enemy fire, succeeded in moving all the casualties to a comparatively safe position.

By his leadership, initiative and untiring devotion to duty, Platoon Sergeant Bailey contributed materially to the success of the operation, and upheld the highest traditions of the United States Naval Service.