[2]: 353 The engagement took place when a ten-man unit of American Marines led by Sergeant Arthur M. Palrang were ambushed by Sandinista forces led by Miguel Angel Ortez after leaving Ocotal to repair the telephone line with San Fernando.

Eight Marines were killed in the firefight (including Palrang[4]), with the two survivors being wounded.

It was the largest loss of American life in a single battle during the occupation of Nicaragua.

The battle resulted in the Sandinistas capturing "two Browning automatic rifles, one Thompson submachine gun, three Springfield rifles, and eight fully equipped mules.

[1] In the United States, the incident reignited controversy over the military occupation of Nicaragua.