In Greek mythology, naiads are nymphs who lived in and gave life to lakes, rivers, springs, and fountains.

Built as Princess in 1863 at Freedom, Pennsylvania, the ship was purchased by the Navy from F. Martin at Cincinnati, Ohio, on 3 March 1864; and commissioned on 3 April 1864, Acting Master Harry T. Keene in command.

Acquired to bolster Union strength along the Mississippi River and its tributaries against Confederate cavalry and guerrilla raids, Naiad served in the shallow waters through the end of the American Civil War, from time to time fighting Southern shore batteries.

The constant patrol of the rivers by Naiad and her sister "tinclads" helped the Union to maintain open communications and supply lines in the West while preventing the South from mustering her resources to oppose Generals Sherman and Grant.

Renamed Princess in post-war civilian service, she struck a snag and sank at Napoleon, Missouri, on 1 June 1868.