Farenholt was laid down on 13 September 1920 by Bethlehem Shipbuilding Corporation, Union Iron Works, San Francisco, California.

Gunnery drills, proving torpedoes, acting as plane guard for seaplane-carrying battleships and cruisers, fleet problems, and practice war maneuvers with the Army kept Farenholt almost constantly at sea.

In 1924 and 1927, Farenholt passed through the Panama Canal for fleet concentrations in the Caribbean, and during the second cruise, sailed north to visit Norfolk, Virginia, and Newport before returning to San Diego.

During the summer of 1929, in her last year of service, Farenholt cruised along the west coast with Naval Reserve members embarked for training, visiting Victoria, British Columbia, as well as United States ports.

After partial scrapping, she was sold as a hulk on 10 June 1931 in accordance with the terms of the London Naval Treaty.