Ensign Kelly was the pilot of an AD-3 Skyraider dive bomber with Fighter Squadron 54 aboard the carried USS Essex (CV-9). On 9 January 1952, his aircraft was struck by anti-aircraft fire, nosed over in a vertical dive, crashed and burned. His remains were not recovered. His name is inscribed on the Courts of the Missing at the Honolulu Memorial.

For his leadership and valor, Ensign Kelly was awarded the Distinguished Flying Cross, the Air Medal with Gold Star, the Purple Heart, the Combat Action Ribbon, the Korean Service Medal, the United Nations Service Medal, the National Defense Service Medal, the Korean Presidential Unit Citation and the Republic of Korea War Service Medal.