Utah returned to the US on 21 October, where she returned to her old post as the flagship of BatDiv 6.
In early 1924, Utah took part in the Fleet Problem III maneuvers, where she and her sister Florida acted as stand-ins for the new Colorado-class battleships.
Later that year, Utah was chosen to carry the US diplomatic mission to the centennial celebration of the Battle of Ayacucho, which took place on 9 December 1924.
She left New York on 22 November with General of the Armies John J. Pershing aboard for a goodwill tour of South America; Utah arrived at Callao, Peru, on 9 December.
At the conclusion of Pershing's tour, Utah met him at Montevideo, Uruguay, and then carried him to other ports, including Rio de Janeiro, Brazil, La Guaira, Venezuela, and Havana, Cuba.
The tour ultimately ended when Utah returned Pershing to New York on 13 March 1925.
Utah conducted midshipman training cruises over the summer of 1925.
She was decommissioned at the Boston Navy Yard on 31 October 1925, and placed in drydock for modernization.
The modernization replaced her coal-fired boilers with new oil-fired models, and her aft cage mast was replaced with a pole mast.
She was reboilered with four White-Forster oil-fired models that had been removed from the battleships and battlecruisers scrapped as a result of the Washington Naval Treaty.
Utah also had a catapult mounted on her Number 3 turret along with cranes for handling the floatplanes.

Utah returned to active duty on 1 December, after which she served with the Scouting Fleet.
She left Hampton Roads on 21 November 1928 for another South American cruise.
This time, she picked up President-elect Herbert C. Hoover and his entourage in Montevideo, and transported them to Rio de Janeiro in December, and then carried them home to the United States, arriving in Hampton Roads on 6 January 1929.
According to the terms of the London Naval Treaty of 1930, Utah was converted into a radio-controlled target ship, to replace the older North Dakota.
On 1 July 1931, Utah was accordingly redesignated "AG-16".
All of her primary and secondary weapons were removed, though her turrets were still mounted.
The plane handling equipment was removed along with the torpedo blisters that were added in 1925.
Work was completed by 1 April 1932, when she was recommissioned.

On 7 April, Utah left Norfolk for sea trials to train her engine room crew and to test the radio-control equipment.
The ship could be controlled at varying rates of speed and changes of course: maneuvers that a ship would conduct in battle.
Her electric motors, operated by signals from the controlling ship, opened and closed throttle valves, moved her steering gear, and regulated the supply of oil to her boilers.
In addition, a Sperry gyro pilot kept the ship on course.
She passed her radio control trials on 6 May, and on 1 June, the ship was operated for 3 hours under radio control.
On 9 June, she again left Norfolk, bound for San Pedro, California, where she joined Training Squadron 1, Base Force, United States Fleet.
Starting in late July, the ship began her first round of target duty, first for the cruisers of the Pacific Fleet, and then for the battleship Nevada.
She continued in this role for the next nine years; she participated in Fleet Problem XVI in May 1935, during which she served as a transport for a contingent of Marines.
In June, the ship was modified to train anti-aircraft gunners in addition to her target ship duties.
To perform this task, she was equipped with a new 1.1-inch (28 mm)/75 caliber anti-aircraft gun in a quadruple mount for experimental testing and development of the new type of weapon.

Utah returned to the Atlantic to participate in Fleet Problem XX in January 1939, and at the end of the year, she trained with Submarine Squadron 6.
She then returned to the Pacific, arriving in Pearl Harbor on 1 August 1940.
There, she conducted anti-aircraft gunnery training until 14 December, when she departed for Long Beach, California, arriving on 21 December.
There, she served as a bombing target for aircraft from the carriers L
Utah returned to the US on 21 October, where she returned to her old post as the flagship of BatDiv 6. In early 1924, Utah took part in the Fleet Problem III maneuvers, where she and her sister Florida acted as stand-ins for the new Colorado-class battleships. Later that year, Utah was chosen to carry the US diplomatic mission to the centennial celebration of the Battle of Ayacucho, which took place on 9 December 1924. She left New York on 22 November with General of the Armies John J. Pershing aboard for a goodwill tour of South America; Utah arrived at Callao, Peru, on 9 December. At the conclusion of Pershing's tour, Utah met him at Montevideo, Uruguay, and then carried him to other ports, including Rio de Janeiro, Brazil, La Guaira, Venezuela, and Havana, Cuba. The tour ultimately ended when Utah returned Pershing to New York on 13 March 1925. Utah conducted midshipman training cruises over the summer of 1925. She was decommissioned at the Boston Navy Yard on 31 October 1925, and placed in drydock for modernization. The modernization replaced her coal-fired boilers with new oil-fired models, and her aft cage mast was replaced with a pole mast. She was reboilered with four White-Forster oil-fired models that had been removed from the battleships and battlecruisers scrapped as a result of the Washington Naval Treaty. Utah also had a catapult mounted on her Number 3 turret along with cranes for handling the floatplanes. 
Utah returned to active duty on 1 December, after which she served with the Scouting Fleet. She left Hampton Roads on 21 November 1928 for another South American cruise. This time, she picked up President-elect Herbert C. Hoover and his entourage in Montevideo, and transported them to Rio de Janeiro in December, and then carried them home to the United States, arriving in Hampton Roads on 6 January 1929. According to the terms of the London Naval Treaty of 1930, Utah was converted into a radio-controlled target ship, to replace the older North Dakota. On 1 July 1931, Utah was accordingly redesignated "AG-16". All of her primary and secondary weapons were removed, though her turrets were still mounted. The plane handling equipment was removed along with the torpedo blisters that were added in 1925. Work was completed by 1 April 1932, when she was recommissioned.
On 7 April, Utah left Norfolk for sea trials to train her engine room crew and to test the radio-control equipment. The ship could be controlled at varying rates of speed and changes of course: maneuvers that a ship would conduct in battle. Her electric motors, operated by signals from the controlling ship, opened and closed throttle valves, moved her steering gear, and regulated the supply of oil to her boilers. In addition, a Sperry gyro pilot kept the ship on course. She passed her radio control trials on 6 May, and on 1 June, the ship was operated for 3 hours under radio control. On 9 June, she again left Norfolk, bound for San Pedro, California, where she joined Training Squadron 1, Base Force, United States Fleet. Starting in late July, the ship began her first round of target duty, first for the cruisers of the Pacific Fleet, and then for the battleship Nevada. She continued in this role for the next nine years; she participated in Fleet Problem XVI in May 1935, during which she served as a transport for a contingent of Marines. In June, the ship was modified to train anti-aircraft gunners in addition to her target ship duties. To perform this task, she was equipped with a new 1.1-inch (28 mm)/75 caliber anti-aircraft gun in a quadruple mount for experimental testing and development of the new type of weapon.
Utah returned to the Atlantic to participate in Fleet Problem XX in January 1939, and at the end of the year, she trained with Submarine Squadron 6. She then returned to the Pacific, arriving in Pearl Harbor on 1 August 1940. There, she conducted anti-aircraft gunnery training until 14 December, when she departed for Long Beach, California, arriving on 21 December. There, she served as a bombing target for aircraft from the carriers L
USS Utah (BB-31)