The ship was ordered in August 1941 under the Rapid Naval Armaments Supplement Programme. Built by Mitsubishi Yards in Yokohama, the ship was laid down in 1942, launched in late 1942, and completed on 31 March 1943.
On 2 November, W-26 was damaged by bombs, while at Rabaul, New Britain, and beached to prevent her loss.[1] She was repaired and refloated and departed Rabaul for Truk on 23 November. W-26 underwent further repairs in December at Rabaul, tied up alongside Hakkai Maru. While anchored in Karavia Bay, near Rabaul on 17 February 1944, she was attacked by SBD dive-bombers and TBF torpedo-bombers of the United States Navy. Sunk in the attack were W-26, Iwate Maru, and guard boat Funku Maru No. 2. She was removed from the Navy List on 30 April 1944.
Her wreck was partially salvaged by Nanyo Boeki Kaisha in 1958.