Acquired by the U.S. Navy on 1 March 1950, the transport was assigned to MSTS. Manned by a civilian crew, George W. Goethals continued trooplift and passenger voyages out of New York.
During the Korean War she helped to maintain American military strength in Europe and the Middle East. Transporting troops and military cargo, she steamed to England, Germany, North Africa, Italy, Greece, and Turkey during European and Mediterranean deployments. In addition, she rotated troops to American bases in the Caribbean. In 1953, for example, she completed 12 round-trip voyages out of New York to Cuba, Puerto Rico, and the Canal Zone.
Between 1955 and 1959 George W. Goethals continued a busy, far-ranging deployment schedule. During this period she deployed 18 times to ports in Western Europe and three times to the Mediterranean, and she completed 30 round trips to the Caribbean. Placed in a ready reserve status from 15 December 1958 to 21 February 1959, she made a run to Bremerhaven and back during February and March. In the next 6 months, she deployed to the Caribbean seven times.