On October 15, 1940, the Puerto Rico National Guard was activated pursuant to Executive Order 3551. Esteves was promoted to the rank of Brigadier General and ordered to active duty and given the command of the 92nd Infantry Brigade. He commanded the 92nd until he was summoned by José Miguel Gallardo the Interim Governor of Puerto Rico to organize a State Guard, with the Army's approval, that in a short time consisted of nine well trained and equipped regiments. On June 22, 1946, Esteves was awarded with the Legion of Merit by the Military Department of the Antilles. During this time, he reorganized the Puerto Rico National Guard and held the position of Adjutant General until his retirement in June 1957.