Grebe was built by the Staten Island Steam Boat Co., was launched 17 December 1918; it was sponsored by Miss Emma Youmans and commissioned at the Brooklyn Navy Yard 1 May 1919.

From 9 July 1919 until 1 October, Grebe, based at Kirkwall, Orkney, was part of a minesweeper flotilla clearing the North Sea of mines laid by the Allies during World War I.

After extensive repairs, Grebe moved to the Boston Navy Yard 4 November 1920; from there she sailed the coast from Maine to New Jersey calibrating radio compass stations and doing miscellaneous towing and rescue work.

From there she made a round trip to Norfolk, Virginia, Guantanamo Bay, Cuba, and the Panama Canal Zone which occupied her from 1 December 1921 until 18 March 1922, when she returned to Portsmouth.

Grebe's finest moment came in 1930 after hurricane San Zenón laid waste large parts of the Dominican Republic and killed thousands on September 3rd.

17 March 1931 Grebe brought Dr. Paul M. Pearson, Governor-appointee, and his staff from San Juan to St. Thomas; nucleus of the Virgin Island's first civilian government.

Millions of Americans thrilled to their heritage touring "Old Ironsides" in New York City, Norfolk, Key West, Galveston, Guantanamo, Los Angeles, Seattle, Bellingham, Portland, and the Panama Canal Zone.

Operating there until mid-1940; she performed a variety of tasks, including towing for target practice, participating in fleet problems, minesweeping exercises, training squadron details, and harbor service.

Her tour there was interrupted by two voyages, the first to Pearl Harbor 6–31 May 1935 for fleet problems and the second to Guantanamo Bay, Cuba, and Norfolk, Virginia, 26 December to 7 May 1939 for gunnery exercises.