Taylor was gone over with a critical eye and determined that she was unfit for further naval service. Her years of service to her country had finally worn her out. Early in June 1969 Taylor was moved to San Diego, California, and was decommissioned. USS Taylor (DD 468) was stricken from the Navy list on 2 July 1969, and transferred to the Italian Navy at the same time. The crew was dressed in whites as the ensign came down for the last time and the quarterdeck watch left the ship. The Italian crew then went aboard the now designated Italian ship Lanciere D 560. She would serve Italy until January 1971, when she was decommissioned and struck from the Italian Navy list. Subsequently, she was cannibalized to maintain her sister ship still serving in the Italian Navy.
Read the log of U.S. Navy examination of the ship, the declaration of need to decommission and transactions with Italy on the transfer of Taylor to the Italian Navy.