The missile in Wednesday's test, SM-3 Block IIA, was built by Raytheon and is a project in development as a collaboration between the US and Japan.
A Standard Missile-3 Block IIA was launched from Kauai Island in Hawaii using the Aegis Ashore technology - a land-based variant of the Aegis missile defense system - but it failed to hit a dummy projectile launched from an aircraft, a US official said.
Threats exchanged online between Trump and North Korean leader Kim Jong-Un have increased tensions between the two countries, with North Korea ramping up its missile launches, with some flying over Japanese territory.
The missile, which is being developed by weapons manufacturer Raytheon, is used to target intermediate range missiles. "We're now one for three", a U.S. official with knowledge of the test told Fox News.A spokesman from the U.S. Missile Defense Agency only would acknowledge a test took place, but refused to reveal the results.
It is unclear why the test failed and an analysis is under way, the official said. It has created a correction template for false alerts and has stopped ballistic missile defense drills until its own investigation is done.
In a separate report, the Federal Communications Commission (FCC) said the officer claimed he believed the threat was real and had not heard a phrase stating that it was an exercise.
The SM-3 Block IIA can be employed on Aegis-equipped destroyers as well as with the Aegis Ashore system that Japan decided in December to deploy.
A Department of Defense spokesperson would only acknowledge to CNN that the test occurred, not whether it failed.
The administrator of Hawaii's Emergency Management Agency has resigned and an officer with a track record of "poor performance" has been fired after triggering mass panic with a false alert of a ballistic missile headed for the Pacific islands, officials said Tuesday.
And indeed, America's missile defense capabilities are getting more attention these days, as North Korea tested several intercontinental ballistic missiles a year ago.