It was commanded by Lieutenant John D. Bulkeley and made up of six motor torpedo boats: PT-31, PT-32, PT-33, PT-34, PT-35, and PT-41, the last as the squadron flagship.

The other six boats of the squadron remained at Pearl Harbor, Hawaii, and were there when war broke out, eventually being shipped to the Solomons.

After the outbreak of hostilities between the United States and Japan on 7 December 1941, the squadron moved from Cavite to Sisiman Bay[note 1] on the Bataan Peninsula with the requisitioned tug Trabajador as tender,[1] where it helped in the defense of Bataan and Corregidor during the Japanese invasion of the Philippines.

This was to be the squadron's last action: PT-34 was destroyed by Japanese aircraft, PT-35 had to be scuttled to avoid capture, and PT-41 was commandeered by the U.S. Army to defend Lake Lanao.

Bulkeley was awarded the Medal of Honor, the Distinguished Service Cross, the Philippine Distinguished Conduct Star, and the Silver Star during his command of the squadron, making him one of the most decorated U.S. naval officers of World War II.