With the British holding Philadelphia and New York City during the winter of 1777–78, General George Washington at Valley Forge was cut off from his sources of supplies.

Many British cargoes intended for Sir Henry Clinton in New York were seized by American privateers and reached General Washington via Chestnut Neck and the described route.

General Washington dispatched Count Kazimierz Pułaski and his Legion to assist the Patriots, although they did not arrive until the day following the battle.

Because of bad weather, the British fleet did not arrive off Little Egg Harbor until late in the afternoon of October 5, 1778, and were prevented from getting over the bar.

Knowing the people had been warned and that Count Pułaski was on his way, the British troops made their way up the river to Chestnut Neck as quickly as possible.

Although they retrieved some supplies and destroyed others at Chestnut Neck, Ferguson's men were not able to capture any of the American privateers or recapture any of the prize vessels present in the area.

In the early twentieth century, the General Lafayette Chapter of the Daughters of the American Revolution erected a 50-foot (15 m) high monument to mark the site of the Battle of Chestnut Neck and honor the men that fought there.