"Gipsy" was laid down by the Fairfield Shipbuilding and Engineering Company, at Govan, Scotland on 4 September 1934, launched on 7 November 1935 and completed on 22 February 1936. Excluding government-furnished equipment like the armament, the ship cost £250,364. Aside from a brief period assigned to the 20th Destroyer Flotilla of the Home Fleet after her commissioning, "Gipsy" spent the pre-war period assigned to the 1st Destroyer Flotilla with the Mediterranean Fleet. She was refitted at Devonport Dockyard between 2 June and 30 July 1938.