On 12 December 1937, Ladybird, along with Bee became involved in the Panay incident and came under fire from a Japanese artillery unit near Wuhu on the Yangtze River.

During the journey she sustained damage which meant she was limited to a speed of 7 knots (13 km/h; 8.1 mph) due to a misaligned hull.

On 25 February 1941 she landed a Royal Marines unit during Operation Abstention, an ill-fated attempt to seize the Italian island of Kastelorizo, where she was hit by an aerial bomb.

Later, acting in support of the Tobruk garrison, she shelled the Gazala airfield and ferried in supplies.

During this duty, on 12 May 1941, she was severely damaged by dive bombers and set on fire, settling on an even keel in 10 feet (3.0 m) of water.