Lord Melville was initially ordered as a schooner to a design by Master Shipwright George Record of the Kingston Royal Naval Dockyard and was enlarged to a brig after construction began.

[5] During a survey of the shipyard at Kingston, Upper Canada, it was found that there was enough building material contained within the yard to construct a new vessel.

Lord Melville took part in a series of engagements off the Niagara River and Burlington Bay, including the capture of the American schooners Julia and Growler on 10 August.

The following day, Lord Melville sprang a leak and the squadron returned Kingston, where the brig underwent repairs.

Lord Melville and Royal George were the vessels closest to the American squadron and bore the brunt of the cannon fire.

In a following engagement on 28 September, after the flagship of the British squadron, Wolfe was dismasted, Lord Melville and Earl of Moira attacked the American battle line, exchanging heavy fire with Madison, Oneida and Governor Tompkins.

[8] As part of the British attempt to intercept the American army marching on Montreal in October, the smaller vessels in the squadron were detached under Captain William Mulcaster and sailed to French Creek.

In November, the squadron remained mostly at anchor due to the weather and Lord Melville made one final trip on 3 December before being laid up for the winter.

At 12:00, Star and Charwell (the renamed Earl of Moira) escorted the gunboats and bateaux loaded with infantry towards the shore.

In July Dobbs took command of a detachment from the squadron composed of Star, Charwell, Magnet and the British Army tender Vincent that sailed to the Niagara River to provide quick transportation for the forces under General Gordon Drummond's forces moving from York, Upper Canada into the Niagara region.

Following the loss of Magnet, which had been blown up to avoid capture, Dobbs' detachment remained penned up in the Niagara River by elements of the American squadron.

Star, Charwell and Netley came out to Yeo's vessel and disembarked the infantry reinforcements and supplies they carried for Drummond's army.

On 1 November, the squadron sailed again to Niagara, ferrying infantry to Fort George and returned with troops bound for Kingston.