She was built in 1774 in the Province of Massachusetts Bay and served as an unarmed private fishing boat for eight months before Vice-Admiral Samuel Graves purchased her for the Royal Navy in January 1775 for £750.

On 27 May 1775 Diana experienced unfavourable winds while exchanging fire with colonial land forces under John Stark during the Battle of Chelsea Creek.

The schooner rolled onto her side due to the lowering tide, but the crew continued to fire cannon when they were unable to stand on her deck.

On 1 August 1775, Diana's captured mast was erected as a liberty pole on Prospect Hill, a fortified high-ground overlooking the pathways to Charlestown, Boston.

[6][7][8][9] While occasional attempts have been made to locate the remains of the Diana in Chelsea Creek, which has been extensively dredged and industrialized in the years since the battle, no wrecks found in that body have been identified as hers.