Built to chief CSN constructor John L. Porter's similar plans for those of the ironclad CSS North Carolina, she had been laid down and launched at the foot of Church Street; her fitting-out was completed by the shipyard J. L. Cassidey & Sons.

Chief naval constructor John L. Porter had designed these armored steam ships for harbor defense, adapting plans he had originally conceived in 1846, fifteen years before to the war.

On April 20, 1864 the newly completed Raleigh steamed down the Cape Fear River and joined her sister ironclad CSS North Carolina, which was already in CSN service at Smithville.

Flag Officer William F. Lynch quickly decided to take his new ironclad over the bar at New Inlet, North Carolina and attack the Union blockading squadron at sea.

Unable to sustain the added weight pressure, Raleigh "broke her back", resulting in a total loss of the new ironclad after serving just one week in the Confederate Navy.