Sloat was laid down on 18 January 1919 by the Bethlehem Shipbuilding Corporation, San Francisco, California; launched on 14 May 1919; sponsored by Mrs. Edwin A. Sherman; and commissioned on 30 December 1920.

On 1 July, the Battle Fleet sailed from Hawaii for a goodwill cruise to the Southwest Pacific, and Sloat called at Melbourne, Australia; Lyttelton and Wellington, New Zealand; and American Samoa before returning to San Diego on 19 September.

After getting underway for Panama on 4 June, Sloat received repairs from a tender in Gatun Lake, Canal Zone, and then was ordered to relieve Mervine (DD-322) on patrol off the Nicaraguan coast.

Her mission was to protect lives and property of United States citizens and of other foreign nationals in Nicaragua and to help preserve order.

Returning to San Diego on 1 September, she took part in exercises off the Canal Zone from 27 January to 6 February 1929 and then underwent overhaul at Mare Island from 3 March to 13 April.