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The first Navajo, a tug built in 1907 by Neafie - Levy Philadelphia, Pennsylvania was purchased the Navy 21 November 1907, and commissioned 17 March 1908.

Assigned to Pearl Harbor, Navajo operated in the Hawaiian Islands throughout her Naval career performing towing and docking operations. In 1922, Water Barge #10, while in tow by Navajo collided with R-16. With a hole in her bow. the barge sank within minutes. The gallant action of men from Navajo resulted in rescue of the barge's 3-man crew.

After decommissioning, Navajo was struck from the Navy List 24 April 1937. However, she was restored to the list as IX-56, 14 January 1942 and she served in a decommissioned status at the Navy Yard at Pearl Harbor. She was placed in service 19 March 1942 and continued operations in the 14th Naval District throughout World War II.