Accordingly, her owner, the Independent Asphalt Paving Co., of Seattle, Washington, delivered the tug to the Navy on 4 December 1917.

Fitted out at the Puget Sound Navy Yard, Bremerton, Washington, and designated SP-1158, Arctic was placed in commission there on 15 January 1918, LTJG Ernest G. Heinrici, USNRF, in command.

After escorting the submarine chaser USS SC-302 to San Diego, Arctic towed two coal barges through the Panama Canal and proceeded to Hampton Roads, Virginia, where she arrived early in May and began preparations for "distant service."

Assigned to Division 11, Patrol Force, Arctic departed New London, Connecticut, on 18 May as one of the escorts for a convoy that included 27 submarine chasers.

After shepherding her charges to Bermuda, the tug proceeded on to Ponta Delgada, in the Azores, on escort duty before returning to New London in mid-August 1918.