On 17 December, a passenger ship loaded with 1,200 passengers struck a mine off Corregidor and sunk with a large loss of life. PT-34, along with squadron mates PT-32 and PT-35 rescued some 280 survivors, who were distributed between Corregidor and French SS Si-Kiang.
This PT boat evacuated Admiral Francis W. Rockwell, General Richard Marshall (Deputy Chief of Staff, ), Col. Charles P. Stivers (G-1, ), Capt. Joseph McMicking (Philippine Army, Asst. G-2, ) from Corregidor to Mindanao on 12 March 1942 as part of the operation to evacuate General Douglas MacArthur to Australia. On the night of April 8 1942, off Cebu, the Imperial Japanese cruiser Kuma and the torpedo boat Kiji were attacked by PT-34 in concert with PT-41. Both PT boats reported seeing multiple torpedo hits on the Kuma from their attack, but according to Japanese Navy records examined after the war, the Kuma was hit in the bow by one of the torpedoes fired by PT-34, but it failed to detonate.
PT-34 was sunk near Kauit Island by four Japanese F1M “Pete” flying boats from the Sanuki Maru on April 9 1942, in the aftermath of the Kuma attack. Lt. Kelly survived the sinking, and was later transported out of the Philippines along with three other officers of the squadron. The crew suffered one KIA, one DOW and three WIA of 6 man crew.