Arbutus was placed on order in July 1939, one of the first 26 "Flowers" of the pre-war building programme. She was laid down at the Blyth Shipbuilding Company, at Blyth, Northumberland, on 30 November 1939. She was launched on 5 June 1940 and completed 12 October 1940.^[3] She commissioned on the same day under the command of Lt. Cdr. H Lloyd Williams, RNVR,^[4] one of the earliest Volunteer Reserve command appointments.

After trials and working up Arbutus joined Western Approaches Command and was assigned to 6 Escort Group, led by JM Rowland in HMS Wolverine for convoy escort duties. In this role she was engaged in all the duties performed by escort ships; protecting convoys, searching for and attacking U-boats, and rescuing survivors. Over the next 14 months Arbutus escorted 26 convoys on the Atlantic routes,^[5][6] helping to bring over 750 ships to safety, though a number were lost in various incidents. She was involved in two convoy battles, and helped destroy two U-boats.

In March 1941, Arbutus, with 6 EG, escorted convoy OB 293 when it came under attack by a force of U-boats. The escort group mounted a vigorous and aggressive defence, resulting in the destruction of two U-boats and damage to a third, for the loss of two ships sunk and three damaged. During the two-night action, on 7 March 1941, Arbutus and Camellia found and attacked U-70; she was depth-charged and brought to the surface, where she was abandoned and sank.^[7]

In April 1941 6EG went to the aid of convoy SC 26 which was under attack. On 5 April Arbutus, with Wolverine and Scarborough, found and attacked U-76, which was brought to the surface and abandoned. As she surfaced Arbutus was closing in order to ram her; when he saw she was being abandoned Arbutus' then commander, Lt. ALW Warren, changed plans and attempted to capture the submarine before it sank. U-76 was boarded by several members of the corvette's crew, and efforts were made to secure and search the boat while Arbutus made fast to the U-boat with hawsers. However, U-76 was sinking too fast, and the capture failed. This was the first such instance of a U-boat boarding and acquisition in World War II, though it was unsuccessful;^[8] the exploit was repeated the following month when U-110 was captured by ships of 3 Escort Group.

On 5 February 1942 Arbutus was escorting convoy ON 63 when it was detected by U-136. The U-boat sent a sighting report and commenced shadowing, but the transmission was DFed and escorts Chelsea and Arbutus ran down the bearing to attack. The U-boat commander, K/L H Zimmerman, responded aggressively, counter-attacking and torpedoing Arbutus as she approached. The corvette broke in half and sank, with the loss of half her crew.^[9] 43 men, including her commander, were lost.^[10] U-136 was subsequently depth-charged by Chelsea, damaged and forced to abandon her pursuit, saving ON 63 from further harm.^[9]

During her service Arbutus was credited with sharing in the destruction of two U-boats:

• Blair, Clay (1996). Hitler's U-Boat War: The Hunters 1939-1942. Cassell. ISBN 0-304-35260-8.
• Gardiner, Robert; Chesneau, Roger, eds. (1980). Conway's All The World's Fighting Ships 1922–1946. London: Conway Maritime Press. ISBN 0-85177-146-7.
• Elliott, Peter (1977). Allied Escort Ships of World War II: A complete survey. London: Macdonald and Jane's. ISBN 0-356-08401-9.
• Arnold Hague: The Allied Convoy System 1939–1945 (2000). ISBN (Canada) 1 55125 033 0 . ISBN (UK) 1 86176 147 3
• Kemp, Paul (1997). U-Boats Destroyed, German submarine losses in the World Wars. Arms and Armour. ISBN 1-85409-515-3.
• Niestle, Axel (1998). German U-Boat Losses During World War II. Greenhill. ISBN 1-85367-352-8.

• HMS Arbutus on the Arnold Hague database at convoyweb.org.uk.
• Arbutus at uboat.net
• Arbutus at navalhistory.net