Nicholas was laid down 11 January 1919 by Bethlehem Shipbuilding Corporation, San Francisco, California; launched 1 May 1919; sponsored by Miss Edith Barry; and commissioned at Mare Island Navy Yard 23 November 1920.

Assigned to Reserve Destroyer Divisions, Pacific Fleet, Nicholas departed Mare Island on 17 December 1920 for San Diego, California, arriving on the 20th and remaining principally in that area with a reduced complement through 1922.

Arriving Balboa twenty days later following exercises en route, the warship engaged in tactical and strategic maneuvers through the end of March and returned to San Diego on 11 April.

Engaged in a high-speed engineering run down the Pacific Coast, the squadron changed course at 21:00 as inaccurate navigation indicated this was the approach to Santa Barbara Channel.

At 21:05, Delphy stranded on the rocks of Point Pedernales, known to sailors as Honda, or the Devil's Jaw; though warning signals were sent up by the flagship, the sheltering configuration of the coast line prevented their recognition by the remaining ships of DesRon 11 and in the ensuing confusion, six other destroyers — including Nicholas — ran aground also.