The action took place on September 16, 1776, in what is now the Morningside Heights area and east into the future Harlem neighborhoods of northwestern Manhattan Island in what is now part of New York City.

Washington cut short the pursuit, unwilling to risk a general engagement with the British main force, and withdrew to his own lines.

On August 27, 1776, British troops under the command of General William Howe flanked and defeated the American army at the Battle of Long Island.

[6] On September 15, Howe landed his army in an amphibious operation at Kip's Bay, on the eastern shore of Manhattan, along the East River.

[11] Washington, who had been expecting an attack, had ordered a party of 150 men under the command of Lieutenant Colonel Thomas Knowlton to reconnoiter the British lines.

[12] At daybreak, Knowlton's troops were spotted by British pickets from Brigadier Alexander Leslie's Light Infantry brigade.

[13] When Knowlton realized that the numerically superior British forces were about to turn his flank, he ordered a retreat, which was conducted "without confusion or loss", although perhaps ten men had been lost in the initial skirmish.

[18] The diversionary party, composed of 150 volunteers, ran into the Hollow Way and began to engage the British, who responded by advancing down into the valley to occupy a wooded fenceline and returned fire.

[18] The flanking party consisted of Knowlton's Rangers, reinforced by three companies of Virginia riflemen commanded by Major Andrew Leitch, in total about 200 men.

[20] For an hour and a half, the battle continued in the field and in the surrounding woods until, with some units, including the 3-pdrs, having fired away their ammunition,[21] the British began to withdraw.

The repulse of British troops in this "pretty sharp skirmish" boosted morale in the American ranks "prodigiously", as George Washington observed,[26] even among those who had not been engaged.

[1] There was little fighting for the next month of the campaign, but Washington moved his army to White Plains in October after hearing that the British were attempting to trap him on Manhattan.

[28] The loss of Knowlton was a blow to the fledgling American intelligence operations, as he had created and led the first such unit of the Continental Army, at the direction of Washington.