USCGC Cape Shoalwater was a 95-foot (29 m) type "C" Cape-class cutter constructed at the Coast Guard Yard at Curtis Bay, Maryland in 1958 for use as a law enforcement and search and rescue patrol boat.

[2] The Cape class was designed originally for use as a shallow-draft anti-submarine warfare (ASW) craft and was needed because of the increased tension brought about by the Cold War.

[7][8] After commissioning, Cape Shoalwater was assigned a homeport at Mayport, Florida where she was used for law enforcement and search and rescue (SAR) missions.

[9] She and her crew earned the Navy Expeditionary Medal for operations relating to the Cuban refugee exodus from 3 January 1961 until 23 October 1962.

The same month, she escorted a Cuban refugee boat from 12 nmi (22 km) southwest of Bimini to Port Everglades, Florida.