Lifford was both strategically and politically important as it stands where the River Finn and Mourne meet to form the Foyle and was a traditional stronghold of the O'Donnell dynasty.
Niall went over to support the English Crown with significant numbers of Gaelic troops, after he had been left in charge of the area while Red Hugh was away raiding south into Connacht.
Red Hugh immediately tried to recapture Lifford, but his initial attempt, which involved skirmishing around Castle Finn, left around twelve dead on each side without retaking the town.
Niall Garve led the cavalry forces and during the fighting he fought Red Hugh's younger brother Manus O'Donnell in single combat.
These became part of a pincer movement that allowed English troops at Derry, Dublin and Carrickfergus to penetrate into the heart of alliance-held territory in Tyrone.