In 1941, as United States participation in World War II became increasingly likely, the US Navy embarked on a construction program for escort carriers, which were converted from transport ships of various types.

These proved to be very successful ships, and the Commencement Bay class, authorized for Fiscal Year 1944, were an improved version of the Sangamon design.

[1] They proved to be the most successful of the escort carriers, and the only class to be retained in active service after the war, since they were large enough to operate newer aircraft.

Given the very large storage capacity for oil, the ships of the Commencement Bay class could steam for some 23,900 nautical miles (44,300 km; 27,500 mi) at a speed of 15 knots (28 km/h; 17 mph).

[5] By that time, World War II had ended, and so Palau completed her initial shakedown cruise off California, passed through the Panama Canal, steamed to Boston, and then on 11 May, sailed for Norfolk, Virginia, where she was laid up in reserve.

Palau first participated in Packard II, which involved five Sikorsky H-19 Chickasaw helicopters taking part in the so-called "vertical assault" concept.

Over the course of Packard III, the helicopters carried passengers and equipment some ten miles inland to demonstrate the concept of using helicopter-borne troops to seize strategic areas behind the lines while landing craft went ashore.

[6] By this time, the Navy had begun replacing the Commencement Bay-class ships with much larger Essex-class aircraft carriers, since the former were too small to operate newer and more effective anti-submarine patrol planes.

Proposals to radically rebuild the Commencement Bays either with an angled flight deck and various structural improvements or lengthen their hulls by 30 ft (9.1 m) and replace their propulsion machinery to increase speed came to nothing, as they were deemed to be too expensive.