She was laid down as Bucareli Bay (ACV-61) under Maritime Commission contract by Kaiser Company, Inc., Vancouver, Washington on 15 January 1943; renamed Manila Bay on 3 April 1943; launched on 10 July 1943; sponsored by Mrs. Robert W. Bockius; reclassified CVE-61 on 15 July 1943; acquired by the Navy on 5 October 1943; and commissioned the same day at Astoria, Oregon, Captain Boynton L. Braun in command.

After a shakedown cruise along the west coast, Manila Bay sailed for Pearl Harbor on 20 November and returned a load of damaged planes to San Diego on 4 December.

American naval and ground forces began a three–pronged invasion along northern New Guinea at Aitape, Hollandia, and Tanahmerah Bay on 22 April.

During and after the invasion Manila Bay launched protective air patrols and sent fighters and bombers to attack and destroy Japanese installations in the Aitape area.

Admiral Stump transferred his flag to Corregidor on 6 May, and the following day Manila Bay sailed for overhaul at Pearl Harbor where she arrived on 18 May.

During the next 4 days, she remained east of the embattled island as ships and planes of the Fast Carrier Task Force repulsed the Japanese Fleet in the Battle of the Philippine Sea, and inflicted staggering losses on the enemy, crippling the Imperial Navy’s air strength permanently.

As a precautionary and rather unusual move which Raymond A. Spruance later characterized as "commendable initiative", Manila Bay launched four of the P-47 Thunderbolts she was ferrying to fly protective CAP until radar screens were clear of contacts.

Steaming via Eniwetok, she reached Manus 3 October and began final preparations for the invasion of the Philippines at Leyte Gulf.

Surviving Japanese ships retreated into the Mindanao Sea pursued by destroyers, PT boats, and after sunrise by carrier-based bombers and fighters.

Manila Bay sent an eight-plane strike against ground targets on Leyte before sunrise; subsequently, these planes bombed and strafed retiring enemy ships southwest of Panaon Island.

A running battle ensued between the escort carriers of Rear Adm. Clifton Sprague's Taffy 3 and the larger, vastly more powerful surface ships of Vice Admiral Takeo Kurita's Center Force.

Shortly after 12:30, some 70 planes surprised and attacked the retiring Center Force, strafing and bombing through intense antiaircraft fire.

After steaming to Kossol Passage late in November, Manila Bay departed on 10 December to provide air cover for the Mindoro invasion convoys.

Enemy nuisance and suicide raids began in earnest on 4 January; and despite the tight air cover provided by CVE aircraft, a kamikaze crashed into the flight deck of Ommaney Bay causing her to sink.

[1] Firefighting parties promptly brought the blazes under control, including those of two fueled and burning torpedo planes in the hangar deck.

[1] Most repairs to her damaged electrical and communication circuits were completed by 9 January, when the amphibious invasion in Lingayen Gulf got underway.

Manila Bay had 14 men killed and 52 wounded, but by 10 January she resumed full duty in support of the Lingayen Gulf operations.

Battle damage repairs completed late in April, with VC-72 embarked she trained in Hawaiian waters until sailing for the western Pacific on 24 May.

From 7–12 September her planes carried out photographic and reconnaissance missions over northern Honshū and southern Hokkaidō and dropped emergency supplies at POW camps.

She returned to Pearl Harbor on 24 September, unloaded her aircraft, and steamed to the Marshall Islands carrying replacement troops.

Assigned to "Magic Carpet" duty, Manila Bay embarked 1,031 veterans at Eniwetok, and from 6–18 October sailed to San Francisco.