Laid down by Union Iron Works, San Francisco, California, 20 December 1889, she was launched 28 April 1891, sponsored by Miss Kate C. Gunn.

Assigned to the Pacific Squadron for harbor defense, the Monterey operated out of Mare Island Navy Yard, making numerous voyages to ports on the West Coast on maneuvers and target practice during her first 5 years of naval service.

With the outbreak of the Spanish–American War and Commodore George Dewey's great victory in Manila Bay 1 May 1898, the Monterey was ordered to sail for the Philippines to provide the Asiatic Squadron with big gun support against a possible attack by the Spanish 2nd Squadron, which included the battleship Pelayo and the large armored cruiser Emperador Carlos V. Though not designed for extended ocean cruising, the big monitor departed San Diego, California, 11 June in company with the collier Brutus for Manila.

Sailing via Honolulu and Apra, Guam, the ships made the 8,000‑mile voyage without mishap, arriving Cavite 13 August, and the Monterey remained in the Philippines, supporting the occupation of Luzon into 1899.

The Monterey operated off the China coast to protect American interests at Fuzhou, Shantou, and Shanghai until, returning by Hong Kong to Cavite 16 November 1913.