Esquimalt was of the diesel-powered version, being equipped with a 9-cylinder diesel engine driving two shafts that produced 2,000 brake horsepower (1,500 kW).

[7] After arriving at Halifax in November 1942, Esquimalt required constant attention by the dockyard as the vessel had a series of mechanical problems, undergoing two periods of repair in March and May 1943.

On that day, she was torpedoed and sunk a few miles off Chebucto Head, Nova Scotia by U-190, becoming the last Canadian warship lost to enemy action in the war.

[10] She was employing none of the mandatory anti-submarine precautions: she was not zig-zagging; she had not streamed her towed Foxer-type decoy, designed as a countermeasure against GNAT torpedoes; she had turned off her radar.

[11] U-190's torpedo struck Esquimalt's starboard side engine room with the explosion knocking out the onboard power instantly, preventing any distress signal being sent.

[11][10] She started to list heavily to starboard pushing the lifeboat under water, but the crew managed to get four Carley floats clear of the ship.

Because of the lack of distress calls or signals from Esquimalt, and the unfortunate timing of the attack itself, any rescue effort was substantially delayed which resulted in many men losing their lives to exposure.

[12][13] Two Fairmile B motor launches later sent to patrol the area of the sinking depth charged the wreck of Esquimalt, mistakenly believing it to be a submarine.