In late August 1977, an area of disturbed weather was noted south of Pohnpei. By September 1, a weak surface low accompanied by organized convection developed within the disturbance. Situated to the south of a Tropical Upper Tropospheric Trough, conditions were favorable for further organization and the Joint Typhoon Warning Center (JTWC) issued a Tropical Cyclone Formation Alert for the system. Tracking steadily west-northwestward in response to a well-developed subtropical ridge extending from the International Dateline to China, the system was soon classified a tropical depression early on September 2. Hours later, a weather reconnaissance mission into the depression revealed winds of 75 km/h (45 mph), prompting the JTWC to designate the system as Tropical Storm Babe. Due to the cyclone's proximity to the Philippines, the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) also monitored the storm and assigned it with the local name "Miling".