He was most noted for retaking much of secessionist Arkansas for the Union cause, escaping the besieged port-city of Camden through successful deception tactics, and defeating Sterling Price and E. Kirby Smith at Jenkins Ferry.

His army successfully captured Confederate-held Little Rock in September 1863 and subsequently pushed official Union boundaries south through the state.

Receiving intelligence from captured rebels there, and with his army on one quarter rations, Steele conducted a successful feint operation toward the rebel capital at Washington, Arkansas, and left Thayer's division on the prairie, while he moved his main column eastward to Camden, believing that it contained stockpiles of provisions and forage for his horses.

Upon entering Camden after brushing aside light opposition on April 15, Steele discovered that the enemy had destroyed most of the provisions and supplies there.

One supply train reached Camden from Little Rock by way of Pine Bluff on April 22, temporarily relieving the food crisis in VII Corps.

Learning of this disaster, Steele again employed a successful deception to exit from Camden, which operation was effected without detection on the night of April 26–27.

Proceeding due north on the Military road to Little Rock, elements of Marmaduke's division caught up with VII Corps on the ridge above Jenkins Ferry on the Saline River on April 29, but were easily repulsed and kept at bay enabling Steele to install a pontoon bridge over the Saline and establish strong interior defensive works to guard the crossing.

In point of fact, Steele sent several messages to Union Army Chief of Staff Henry Halleck, to Sherman and to his Department commander General John Schofield prior to the expedition, warning of a dearth of forage and provisions in southwest Arkansas, and also calling the military competency of political general Nathaniel Banks into question.

Thus, when the intelligence confirmed Bank's failure against Dick Taylor in Louisiana, Steele had already formulated a plan to save the VII Corps.

[citation needed] Steele led a force of African American soldiers, officially designated the "Column from Pensacola", in Major General Edward Canby's Army of West Mississippi between February 18, 1865, and May 18, 1865.