Reclassified as a repair ship on 16 August 1937, "Asahi" was taken out of reserve in November, after the Marco Polo Bridge Incident that started the Second Sino-Japanese War, and was used as a transport to land troops in an amphibious landing at Hangzhou Bay. Afterwards she began conversion at Kure, Japan, into a repair ship; this was completed on 18 December 1938. "Asahi" was fitted with a dummy wooden main battery fore and aft to resemble an old battleship after her arrival in Shanghai on 29 December. In May 1939 she was modified to act as a torpedo depot ship and carried out patrols between 29 May and 7 November 1940. She was transferred to Camranh Bay, French Indochina, on 15 November 1940 and later transported the 11th Base Unit from Kure to Camranh Bay 19 November – 7 December 1941.