In August 1906, the upper part of the tower above the columns was changed from white to black to provide a more conspicuous day beacon.

In 1915, $35,000 was requested to disassemble and move the tower and dwellings to the site of Bald Head Lighthouse, as it was believed that shoreline erosion would soon endanger the structures.

Apparently the erosion ceased because the funding request was not repeated and the keepers dwellings still stand today on their original location near the concrete foundation blocks that once supported the lighthouse.

On December 5, 1932, first assistant lighthouse keeper, Devaney F. Jennette, died of a heart attack while in the watch room.

The Cape Fear lighthouse was then demolished because it was believed that if the deactivated tower remained standing it could confuse mariners.