The ship was laid down on 23 August 1942 by the Dravo Corporation at Neville Island, Pennsylvania as the LST-1-class tank landing ship LST-14. Launched on 9 December 1942, sponsored by Mrs. R. J. Mitchell, the ship was renamed Varuna and redesignated AGP-5 on 13 January 1943, and completed as an LST by Dravo Corp. on 26 March 1943. Placed in reduced commission on that date, she was towed to Tampa, Florida, where she was converted to a motor torpedo boat tender (AGP), and commissioned on 31 August 1943, Lt. Comdr. L. W. Borst, USNR, in command.
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