In 1936 she was taken out of service for a complete rebuild at "Trondhjems mekaniske Værksted" and the "Nordenfjeldske Dampskibsselskab"'s own repair yard "Nordre Verft" in Trondheim. As part of the 1936 "Hurtigruten" contract with the Norwegian government, "Nordenfjeldske Dampskibsselskab" had obligated itself to put a new ship into the service. Rather than building a new ship, "Nordenfjeldske" decided to rebuild "Prins Olav" for the "Hurtigruten" cargo/passenger service on the coast of Norway. The rebuild, which lasted until 27 May 1937, changed her tonnage to 2,147 gross register tons (1,247 net register tons). In her new configuration she had the capacity to carry 450 passengers, with 95 cabins in the First Class section and 145 cabins in the Third Class section. Much effort was put into providing good standards for the Third Class section. Her turbines were replaced with a 3,500 ihp four-cylinder compound engine, the largest steam engine built in Norway up to that point in time. The engine had been manufactured by the shipyard "Fredrikstad Mekaniske Verksted", where "Prins Olav" had previously had modification work done. The new shape of "Prins Olav" included a single funnel, unlike the two she had had in her previous guise. While "Prins Olav" had featured two decks and a shelter deck prior to her rebuild, the rebuilt ship had an additional promenade deck and a cruiser stern.