During World War II, the Royal Australian Navy requisitioned "Falie", and commissioned her as HMAS "Falie". Initially she was used as an examination vessel challenging and identifying vessels entering the Port of Sydney. On the night of 31 May 1942, she was acting as one of the sentry vessels outside Sydney Harbour when she struck a Japanese midget submarine trying to infiltrate the harbour. "Falie" was converted in 1943 to a stores vessel, and was deployed to Papua New Guinea, where she saw action landing troops in enemy territory by night.