Named after Clayoquot Sound, Vancouver Island, she was commissioned at Prince Rupert on August 22, 1941. After working up, she left Esquimalt on October 10 for Halifax, arriving November 14. Initially assigned to Halifax Local Defence Force, she was transferred in March, 1942, to WLEF and in May to Gulf Escort Force. While serving with Gulf Escort Force site rescued 55 survivors of HMCS Charlottetown, torpedoed and sunk near Cap Chat on September 11, 1942. In October, Clayoquot joined Sydney Force. She arrived at Halifax on December 29 for a major refit, which was progressively carried out there and at Liverpool and Pictou, N.S.. Completing her refit in May, 1943, she rejoined Sydney Force in July after working up. In January, 1944, she was transferred to HMCS Cornwallis for officers training in A/S warfare, and in October was reassigned to Halifax Force. On December 24, while taking station on convoy XB.139, she was torpedoed and sunk three miles from Sambro Light Vessel by U 806, losing eight of her crew.
Torpedoed and sunk while taking station on convoy XB.139, in the approaches to Halifax harbour. Sunk by U806. Eight of her crew were lost. Ship was lost on Christmas Eve, 24 Dec, 1944.