The regiment was surprised on the night of September 27, 1778, while sleeping in barns near Old Tappan, New Jersey, in close proximity to British positions.

Among the captured was the regimental commander, Lt. Col. George Baylor, who was replaced on November 20, 1778, by Lt. Col. William Washington, transferred from the 4th Continental Light Dragoons.

Losses of 15 killed, 17 wounded, and 100 men captured along with 83 horses in a night attack by British Lt. Col. Banastre Tarleton on April 14, 1780, led to the unofficial amalgamation of the regiment with the 1st Continental Light Dragoons, commonly known as the "1st and 3rd Light Dragoons" as Washington deferred to his friend and senior, Lt. Col. Anthony White, whom he had served under in the 4th CLD.

Washington resumed command of the unit on May 6, 1780, when it was attacked on the Santee River and White captured.

When the companies of the 4th CLD were parceled out during the siege of Yorktown, the 1st and 3rd accepted its few remaining mounted troopers.