Throughout the Philippine Insurrection, Panay served on blockade and patrol duty, intercepting contraband and aiding the Army on Mindanao, Leyte, Cebu, Samar, and Negros. Decommissioning at Cavite 7 August 1902, she was repaired and recommissioned 12 January 1907, Midshipman (Ens. from 2 February 1907) Chester W. Nimitz in command. Assigned to patrol Mindanao, Nimitz, who was to be Commander-in-Chief Pacific in World War II as a Fleet Admiral, took Panay, his first command, into many of the small ports to show the flag. He also commanded the naval station at Polloc. Returning to Cavite in July, Nimitz and his men were assigned to recommission Decatur, and Panay went into reserve, decommissioning 5 October 1907.
Panay served as a yard craft at Olongapo and Cavite and as a ferryboat between Cavite and Manila in the years that followed, even after she was struck from the Navy List 19 June 1914. She was sold 15 April 1920.
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