He served in the Jowaki Afridi Expedition with the Guides in 1877 (mentioned in Despatches), and the Afghan War 1878–80 at Ali Musjid, Tahkt-i-Shan and Asmai Heights and Kabul.

Hammond was 36 years old, and a captain in the Bengal Staff Corps, British Indian Army during the Second Anglo-Afghan War when the following deed took place on 14 December 1879 at the action on the Asmai Heights, near Kabul, Afghanistan, for which he was awarded the VC: For conspicuous coolness and gallantry at the action on the Asmai Heights, near Kabul, on the 14th December, 1879, in defending the top of the hill with a rifle and fixed bayonet, against large numbers of the enemy, while the 72nd Highlanders and Guides were retiring; and again, on the retreat down the hill, in stopping to assist in carrying away a wounded Sepoy, the enemy being not sixty yards off, firing heavily all the time.

[2][3] Following his long military career, Arthur Hammond retired to Camberley in Surrey where he named his residence Sherborne House.

There is to be recorded in our present issue the death of a distinguished Old Shirburnian, who, with his brothers (there were seven in all who owned allegiance to the School) gained their entire school training at Sherborne - Col. Sir Arthur G. Hammond, V.C., K.C.B., the fifth son of Major T. Hammond, H.E.LC.S., who lived at the Abbey Grange, Sherborne.

For the Afghan War, 1878-80 (Ali Musjid, Takht-i-Shan, Asmai, Kabul, and Charaziah) he was twice mentioned in despatches and received the Afghan Medal with two clasps, while at the Asmai Heights he won the Victoria Cross on 14 December 1879, 'For conspicuous coolness and gallantry, in defending the top of the hill with a rifle and fixed bayonet against large numbers of the enemy, while the 72ndHighlandersand Guides were retiring; and again on the retreat down the hill, in stopping to assist in carrying away a wounded Sepoy, the enemy being not fifty yards off, firing heavily all the time.'

Sir Arthur Hammond resided for several years at Sherborne House, Camberley, Surrey, where he took a great interest in local matters, but his health was failing him for some little time, and he died on Easter Sunday, having never completely recovered from a severe operation which he had to undergo.