Williamsburg departed Halifax, on 8 December, bound for Iceland; via Hvalfjörður; and reached Reykjavík, later in December 1941.
She arrived at a time when the newly established Naval Operating Base (NOB), Iceland, was encountering difficulties.
Rear Admiral James L. Kauffman, the first commandant of NOB Iceland, had arrived in Reykjavík in the battleship Arkansas shortly after the United States entered the war.
He found that no quarters existed ashore, either for himself or for his staff.
Moreover, while tentative arrangement had been made to assign a station ship to Reykjavík, the congestion of shipping there and the shortage of space made a permanently pier-moored ship an impossibility.
Therefore, it was necessary to have a ship that could be anchored clear of the docks.
The problem was solved when Admiral Kauffman transferred his flag from Arkansas to Williamsburg at Hvalfjörður, on 23 December.
Since the Army's Port Authority in Iceland at that time was also in need of headquarters, its commanding officer and his staff were also accommodated in Williamsburg.

Rear Admiral Kauffman flew his flag in Williamsburg into the spring of 1942.
By then, the ship had been moored alongside the main quay at Reykjavík.
She not only provided Kauffman with a headquarters, but also served as quarters for the communications personnel and the admiral's staff.
When Camp Knox — the naval facility on Iceland — was completed in mid-May, Kauffman hauled down his flag and moved ashore to release Williamsburg for other duties.

The gunboat got underway on 18 May, with a party of Army officers embarked, for an inspection tour of the island of Iceland.
Led by Major General Charles H. Bonesteel, the party inspected bases at Akureyri, Dalvík, Búðareyri, and Reyðarfjörður.
While making the cruise, the ship escorted the British troop and supply vessel SS Lochnagar to these ports.
With the inspection trip completed by the end of May, Williamsburg put to sea to make contact with the disabled merchantman SS Gemini, reportedly suffering from a damaged propeller and under tow by the British tug Jaunty.

Assisted by a PBY, the gunboat searched for Gemini and Jaunty.
Escorted by USCGC Duane (WPG-33) and Babbitt, the tug and merchantman finally hove into sight on 1 June; and Williamsburg fell in as additional escort to Reykjavik.
Shifting to Hvalfjörður on 4 June, the gunboat underwent tender repairs alongside Melville into the middle of the month.
Returning to Reykjavik, soon thereafter, Williamsburg escorted Pegasus on a coastwise supply mission to Akureyri.
While en route, a PBY provided air coverage; and the gunboat sank a drifting mine with machine gun fire.
She returned to Reykjavík on 20 June.

After transporting a party of Army officers and nurses to Hvalfjörður and back to Reykjavík for an inspection trip and a visit to the battleship Washington, Williamsburg operated on local patrol and convoy escort during July 1942.
On 12 July, in the midst of one such mission escorting the liberty ship SS Richard Henry Lee, Williamsburg took on board 28 sealed boxes of gold bullion — valued at approximately $1,500,000 — at Seyðisfjörður, and transported it to Reykjavík, where she turned it over to Washington.
Williamsburg was then berthed alongside Melville for tender repairs from 14 July to 16 July.

Williamsburg next steamed on Weather Station Patrol "Baker" from 18 July to 20 July, and towed two buoys from Reykjavík to Hvalfjörður before returning to her home port on 22 July, to remain there until the end of the month.

Williamsburg again served as a VIP transport the following month, taking a USO troupe to Hvalfjörður, where the entertainers put on two shows on 2 August.
Eight days later, the converted yacht got underway for Derry, Northern Ireland, for emergency repairs.
Underway on the 10 August, she joined the Royal Navy trawlers HMT Paynter, HMT Bredon (T223), and HMS Blackfly (FY 117) in escorting Convoy RU-35 consisting of nine merchantmen.
Detached at The Minches on 14 August, Williamsburg proceeded independently through the Irish Sea, and arrived at Der
Williamsburg departed Halifax, on 8 December, bound for Iceland; via Hvalfjörður; and reached Reykjavík, later in December 1941. She arrived at a time when the newly established Naval Operating Base (NOB), Iceland, was encountering difficulties. Rear Admiral James L. Kauffman, the first commandant of NOB Iceland, had arrived in Reykjavík in the battleship Arkansas shortly after the United States entered the war. He found that no quarters existed ashore, either for himself or for his staff. Moreover, while tentative arrangement had been made to assign a station ship to Reykjavík, the congestion of shipping there and the shortage of space made a permanently pier-moored ship an impossibility. Therefore, it was necessary to have a ship that could be anchored clear of the docks. The problem was solved when Admiral Kauffman transferred his flag from Arkansas to Williamsburg at Hvalfjörður, on 23 December. Since the Army's Port Authority in Iceland at that time was also in need of headquarters, its commanding officer and his staff were also accommodated in Williamsburg.
Rear Admiral Kauffman flew his flag in Williamsburg into the spring of 1942. By then, the ship had been moored alongside the main quay at Reykjavík. She not only provided Kauffman with a headquarters, but also served as quarters for the communications personnel and the admiral's staff. When Camp Knox — the naval facility on Iceland — was completed in mid-May, Kauffman hauled down his flag and moved ashore to release Williamsburg for other duties.
The gunboat got underway on 18 May, with a party of Army officers embarked, for an inspection tour of the island of Iceland. Led by Major General Charles H. Bonesteel, the party inspected bases at Akureyri, Dalvík, Búðareyri, and Reyðarfjörður. While making the cruise, the ship escorted the British troop and supply vessel SS Lochnagar to these ports. With the inspection trip completed by the end of May, Williamsburg put to sea to make contact with the disabled merchantman SS Gemini, reportedly suffering from a damaged propeller and under tow by the British tug Jaunty.
Assisted by a PBY, the gunboat searched for Gemini and Jaunty. Escorted by USCGC Duane (WPG-33) and Babbitt, the tug and merchantman finally hove into sight on 1 June; and Williamsburg fell in as additional escort to Reykjavik. Shifting to Hvalfjörður on 4 June, the gunboat underwent tender repairs alongside Melville into the middle of the month. Returning to Reykjavik, soon thereafter, Williamsburg escorted Pegasus on a coastwise supply mission to Akureyri. While en route, a PBY provided air coverage; and the gunboat sank a drifting mine with machine gun fire. She returned to Reykjavík on 20 June.
After transporting a party of Army officers and nurses to Hvalfjörður and back to Reykjavík for an inspection trip and a visit to the battleship Washington, Williamsburg operated on local patrol and convoy escort during July 1942. On 12 July, in the midst of one such mission escorting the liberty ship SS Richard Henry Lee, Williamsburg took on board 28 sealed boxes of gold bullion — valued at approximately $1,500,000 — at Seyðisfjörður, and transported it to Reykjavík, where she turned it over to Washington. Williamsburg was then berthed alongside Melville for tender repairs from 14 July to 16 July.
Williamsburg next steamed on Weather Station Patrol "Baker" from 18 July to 20 July, and towed two buoys from Reykjavík to Hvalfjörður before returning to her home port on 22 July, to remain there until the end of the month.
Williamsburg again served as a VIP transport the following month, taking a USO troupe to Hvalfjörður, where the entertainers put on two shows on 2 August. Eight days later, the converted yacht got underway for Derry, Northern Ireland, for emergency repairs. Underway on the 10 August, she joined the Royal Navy trawlers HMT Paynter, HMT Bredon (T223), and HMS Blackfly (FY 117) in escorting Convoy RU-35 consisting of nine merchantmen. Detached at The Minches on 14 August, Williamsburg proceeded independently through the Irish Sea, and arrived at Der
USS Williamsburg