In March 1944, Bailey participated in the Landing on Emirau, where he then helped to establish an U.S. airbase and received Navy Commendation Medal for his service. Upon the departure of general Field Harris to the United States in August 1944, Bailey assumed command of Marine Aircraft Group 11 and led his unit during the Battle of Peleliu in September–November 1944. His group provided close air support to the 81st Infantry Division and 1st Marine Division during the War in the Pacific.