Ordinarily, Defiant Class Starships are not equipped with Holodecks. An exception was made in the case of the USS Dauntless because of the unique circumstances in which she is required to serve. As the flagship of a fleet, the Dauntless frequently requires additional facilities with which she is not already equipped, such as diplomatic facilities, additional sleeping quarters and sophisticated training and simulation facilities. A Holodeck provides a convenient solution to this problem.

Cargo Bay 2 has been fitted with a full suite of Holo-emitters and is generally kept empty so as to allow the use of the bay as a Holodeck. This also allows for use of the compartment as an overflow Cargo Bay as needed.

In addition to functional purposes, the Holodeck is also frequently employed for recreation by the crew, who have devised a number of novel and enjoyable uses for it.