Holder was launched by Brown Shipbuilding of Houston, Texas, 27 November 1943; sponsored by Annette Holder, mother of Lieutenant (junior grade) Holder; and commissioned 18 January 1944. After completion of her shakedown cruise, Holder departed 24 March escorting a convoy bound for Mediterranean ports. Proceeding along the coast of Algeria the convoy was followed 10 and 11 April by German planes and just before midnight 11 April it was attacked by torpedo bombers. Holder and the other escorts immediately opened fire and began making smoke, but a torpedo struck the escort vessel amidships on the port side, causing two heavy explosions. Though fires spread and flooding was serious, Holder's crew remained at their guns to drive off the attackers without damage to the convoy. Alert damage control kept the ship seaworthy and she arrived in tow at Oran for repairs. There it was decided to tow her to New York, where she arrived safely 9 June 1944.
Holder decommissioned at New York Navy Yard 13 September 1944, and was struck from the Naval Vessel Register 23 September 1944. A 95'-long section of the stern portion of Holder's hull was used to repair USS Menges; the remainder was sold for scrap to John A. Witte, Staten Island, New York on 19 June 1947.
The bell of the ship is on display inside the museum ship USS Slater.[1]