The contract to build Daniel Webster was awarded to the Electric Boat Division of General Dynamics Corporation in Groton, Connecticut, on 3 February 1961 and her keel was laid down there on 28 December 1961.

Daniel Webster was originally built with diving planes mounted on a "mini-sail" near the bow, leading to her nickname "Old Funny Fins".

While successful, the "mini-sail" required to contain the operating mechanism reduced hydrodynamic efficiency and lowered her overall speed.

[5] While in service, Daniel Webster was the last Lafayette-class submarine to be retrofitted to carry UGM-73 Poseidon missiles.

Upon completion and designation as the MTS-626, she was towed up-river to her permanent berth at Naval Nuclear Power Training Unit Charleston.