She was laid down as AT‑106 on 26 July 1942, by United Engineering Co., of Alameda, California; launched 23 December 1942; sponsored by Miss Molly Fay; and commissioned 29 September 1943.

After taking part in the Battle of Saipan, she continued towing and salvage operations between the Marianas and Gilberts, returning 2 September 1944 to Pearl Harbor.

Reassigned to the Fifth Fleet, she joined a carrier group in February 1945, striking at Tokyo in support of the Iwo Jima invasion.

For almost a month she rendered valuable assistance to the Okinawa invasion forces, performing her duties despite the threat of Kamikaze suicide attacks.

Molala spent the next seven years making regular deployments to northern and western Pacific waters.