Babbitt was launched on 30 September 1918 at New York Shipbuilding Corporation, Camden, New Jersey, sponsored by Miss Lucile Burlin.

Upon recommissioning on 4 April 1930, Babbitt reported to the Pacific Fleet and served along the west coast until February 1931, when she proceeded to the Atlantic Ocean.

Between February 1931 and May 1932, she operated with Destroyer Squadron, Scouting Force, along the eastern seaboard, in the West Indies, the Gulf of Mexico, and in the Panama Canal Zone.

Placed in full commission 15 May 1935, Babbitt served with the Midshipmen's Coastal Cruise Detachment and then, for two years, with the Special Service Squadron in the Cuban-Puerto Rican area.

Babbitt operated as a convoy escort in the waters off Iceland, along the east and gulf coasts of the United States and in the Caribbean Sea.