At John Garfield's suggestion of opening a servicemen's club in Hollywood, Davis—with the aid of Jack Warner, Cary Grant and Jule Styne—transformed an old nightclub into the Hollywood Canteen, which opened on October 3, 1942. Hollywood's most important stars volunteered to entertain servicemen. Davis ensured that every night there would be a few important "names" for the visiting soldiers to meet. She appeared as herself in the film Hollywood Canteen (1944), which used the canteen as the setting for a fictional story. Davis later commented, "There are few accomplishments in my life that I am sincerely proud of. The Hollywood Canteen is one of them." In 1980, she was awarded the Distinguished Civilian Service Medal, the United States Department of Defense's highest civilian award, for her work with the Hollywood Canteen.

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