Initially serving on the James River as a flag of truce boat, she snuck into the Union Navy anchorage at Hampton Roads and attacked the steam frigate USS Minnesota early on the morning of April 9, 1864.

At an unknown time in mid-1864, Squib was moved by rail to the Wilmington, North Carolina, area, where she served on the Cape Fear River.

Records of her service at Wilmington after November 1864 are not extant, but she may have resupplied a Confederate fortification during the Second Battle of Fort Fisher in January 1865.

During the American Civil War, Confederate attempts to counter the Union blockade included torpedo boats.

The first Confederate torpedo attack occurred in October 1863, when CSS David damaged the ironclad USS New Ironsides.

[10][9] The vessel's spar torpedo shaft was 18 feet (220 in) long,[10] and could be raised and lowered by a chain and tackle system.

Assembling a crew for this mission of six in addition to himself, Davidson decided to use anthracite coal as fuel, to avoid creating sparks or smoke that would reveal the vessel's position prematurely.

[20] Bluffing a move towards the Nansemond River, but then entering the James instead, Squib hid during the day and was towed upriver by Torpedo at night.

As a result of the attack, Union Rear Admiral S. P. Lee forbade Squib to ever be used for flags of truce again,[19] and Davidson was promoted to the rank of commander.

[21] The last extant official report mentioning the activities of Squib was dated November 5, 1864, but Campbell believes she was used to resupply a Confederate fortification during the Second Battle of Fort Fisher in January 1865.

[22] The Confederates withdrew from Wilmington in February 1865, and Squib, along with the steamer CSS General Whiting, were scuttled off Cape Fear.