In January of 1943 the Japanese had decided to evacuate their troops on Guadalcanal after the American invasion and the Japanese failure to repel the attackers. The U.S. had dug in on the island and in months of fighting both sides had lost thousands of men, the Japanese were beaten, but they still had thousands of troops still on the island.

On the night of February 1-2, 1943 a squadron of 20 Japanese destroyers came down the slot for the final evacuation, many U.S. ships were waiting for them, including a number of PT boats. In the darkness battles were fought around Guadalcanal and Savo Island between the PT's and the destroyers, with little or no results for the Americans. The PT's fired 19 torpedoes in all, and made only one possible hit, which did not sink the ship.

The Japanese however had better luck, between gunfire from the destroyers and bombs from the Japanese air force three of the PT's were lost. USS PT-37 and USS PT-111 were both hit by gunfire, probably from the destroyer Kawakaze. PT-37 was hit in the gasoline tank and exploded, only one man survived.

PT-111 suffered the same fate, her commander, Lt. John H. Clagett, was badly burned, but got off the boat. Not able to swim because of the burns to his arms and face two of his crew, Torpedoman's Mate 2nd Class Merle C. Elsass and Seaman 1st Class Walter L. Long, took him in hand until they were picked up by another PT boat. Two of the crew perished.

The last boat lost was PT-123, she was hit by a bomb in the stern, and again the gasoline exploded, most of the crew got off, but three men were lost.