Phillips was a steam-powered tug built in 1901 by William R. Osborn at Croton, New York. During the period of American participation in World War I, the U.S. Navy acquired her under charter from the Commonwealth of Virginia and placed her in commission as USS Phillips (SP-1389).
Phillips performed patrol duties based at Norfolk, Virginia, during the war, at some point being renamed USS SP-1389.
SP-1389 was returned to her owner on 22 October 1918.