The fourth Bailey, DD 492 (the third US Navy ship named for Rear Admiral Theodorus Bailey), was laid down alongside Farenholt at Bethlehem Steel, Staten Island, New York, 11 December 1940. At her launch, 19 December 1941, she was sponsored by Mrs. Mary de Peyster Charles, RAdm. Bailey’s granddaughter. She commissioned 11 May 1942, Lieutenant Commander F. D. Karns, Jr., in command; and reported to the Pacific Fleet.
In the Pacific, Bailey joined Task Force 8 on patrol in the Aleutian Islands. On 12 January 1943, she supported the unopposed invasion of Amchitka Island and on 26 March took part in the Battle of the Komandorski Islands. During a torpedo attack, in which she scored several gunfire hits on the Japanese heavy cruiser Nachi, Bailey received three direct hits from 8-inch shells, which killed five and wounded six men and caused major damage to the ship. For this action, she was awarded the Navy Unit Commendation. After undergoing temporary repairs at Dutch Harbor, Alaska, Bailey arrived at Mare Island Navy Yard 8 April 1943 for permanent repairs.
Repairs completed, she arrived at Pearl Harbor 16 October 1943. Between November 1943 and October 1944 Bailey acted as a fire-support, picket, and patrol ship in the invasions of Tarawa (20 November–7 December 1943); Maloelap and Kwajalein, Marshall Islands (30 January–29 February 1944); Saipan and Tinian, Marianas Islands (15 June–28 July), and Peleliu and Angaur, Palau Islands (15 September–2 October).
On the night of 1 October 1944, Bailey underwent two severe strafing attacks while on picket duty off the Palaus. Damage was extensive, 9 men were killed and 16 wounded. Following emergency repairs, Bailey proceeded to Mare Island for permanent repairs, arriving 25 October.
Returning to Pearl Harbor 24 December 1944, she supported the landings on Mindanao (10 March–10 April 1945) and on Borneo (27 April–22 July). Between August and November 1945, she was engaged in training in Far Eastern waters.
On 11 December 1945, Bailey arrived at Boston, Massachusetts for inactivation and went out of commission in reserve at Charleston, South Carolina, 2 May 1946. She was stricken for the Naval Vessel Register on 1 June 1968. She was sunk as target off Florida on 4 November 1969.
In addition to her Navy Unit Commendation, Bailey earned nine service stars on her Asiatic-Pacific campaign ribbon.