Assigned to the Pacific Fleet, "Palmer" joined in fleet operations until decommissioning at San Diego on 31 May 1922. There she was in reserve until recommissioning on 7 August 1940. Converted to a minesweeper with the designation DMS–5 on 19 November, she returned to the Atlantic and joined Mine Division 19 (MinDiv 19) out of Norfolk, Virginia for escort duty in the Atlantic and Caribbean Sea. She sortied on 24 October 1942, screening Task Force 34 (TF 34) to the invasion of North Africa, arriving on 7 November off Fedala, where she made an exploratory sweep before taking station in the anti-submarine screen. The next day, "Palmer" seized the French trawler "Joseph Elise", and engaged an enemy shore battery.