For the duration of war the fleet tug remained in the South Pacific islands, operating primarily at Espiritu Santo, to tow targets and barges as well as handle other harbor duties.

The ocean tug returned Pearl Harbor 7 September 1945 and from there set course for San Francisco.

She performed harbor duties along the California coast until she decommissioned at San Pedro and went into reserve 26 November 1947.

While berthed with the Columbia River Group, Pacific Reserve Fleet, ATA-123 was named Iuka 16 July 1948.

In September 1962 Iuka entered the National Defense Reserve Fleet at Olympia, Washington, until she was sold in 1976.