Following release, "Fanshaw Bay" sailed northwards, arriving at Port Angeles, Washington, on 26 January 1946. Inactivation work began at Tacoma on 29 January, and she was decommissioned on 14 August. She was mothballed as part of the Pacific Reserve Fleet, and she was redesignated as a helicopter escort carrier whilst in reserve on 12 June 1955. She was struck from the Navy list on 1 March 1959, and sold for scrapping on 29 August to Hyman-Michaels Co., Chicago. She was ultimately broken up in Portland, Oregon, later that year. "Fanshaw Bay" received five battle stars for World War II service, and along with the rest of Taffy 3, received the Presidential Unit Citation for conduct during the Battle off Samar.