She was launched on 17 November 1894 at the Laird, Son and Co shipyard, Birkenhead,[1] and served most of her time in the Mediterranean.

HMS Banshee was one of three "twenty-seven knotter" torpedo boat destroyers ordered from Laird, Son and Co on 7 February 1894 as part of the Royal Navy's 1893–1894 construction programme.

[2][a] The Admiralty laid down broad requirements for the destroyers, including a speed of 27 knots (50 km/h; 31 mph) on sea trials, a "turtleback"[b] forecastle and armament, which was to vary depending on whether the ship was to be used in the torpedo boat or gunboat role.

[13] Banshee was laid down at Laird's Birkenhead shipyard on 1 March 1894 as Yard number 598 and was launched on 17 November 1894.

[17][18] In March 1896, she was docked at Devonport for repair of damage to her hull sustained in severe weather in the Irish Sea.