She moved to Chatham to be fitted-out and have her hull covered with copper plates between 4 April and July 1794; at her completion she had cost £7,694 to build including fitting.

On that day Peterel was part of a small squadron under Nelson in Agamemnon that captured six French vessels that were carrying military supplies from Toulon to St. Piere d'Acena for the siege of Mantua.

In June 1797 Proby authorised Staines to take 20 men in two of the ship's boats to cut out a French privateer that had been preying on merchant vessels off the coast of Tuscany.

[5] In September 1798, Digby sailed from Gibraltar to Faro, Portugal, to deliver despatches from Earl St. Vincent for the Lisbon packet.

[15] On 12 November 1798 the Spanish 40-gun frigate Flora, in company with the 40-gun Proserpina and the 34-gun ships Pomona and Casilda, captured Peterel whilst she was operating off Menorca.

[16] After removing the prisoners from the ship, the Spanish plundered their clothes and possessions, murdering a seaman who attempted to defend his property.

[16] Duckworth detached Argo to pursue the sloop and on 13 November she retook Peterel and her 72-man Spanish prize crew, which was under the command of Don Antonio Franco Gandrada, Second Captain of Flora.

Captain James Bowen of Argo put his own prize crew of 46 officers seamen and marines aboard Peterel.

[17][b] The Spanish squadron, already being chased the next day by several British ships, completely outsailed their pursuers and returned to Cartagena with the prisoners.

[18] After a detention of 14 days at Cartagena, Lieutenant Staines and his fellow prisoners were embarked in a merchant brig bound to Málaga; but they did not arrive there until 24 December, a westerly wind having obliged the vessel to anchor off Almeria, where she was detained upwards of three weeks, and her passengers confined on shore during that period.

[14] On their arrival at the rock, a court-martial was assembled to investigate the circumstances attending their capture by the Spanish squadron; and as no blame could be attached to any individual, the whole of them were sent back to the Peterel immediately after their acquittal.

[12] Peterel and Austen shared in the proceeds of the capture on 18 June 1799 of the French frigates Courageuse, Alceste, and Junon, and the brigs Alerte and Salamine.

[19] Under Austen, Peterel captured or cut out from ports an armed galley, a transport brig carrying cannons and ammunition, and some twenty merchant vessels.

[12] In May 1799 Peterel carried the news to Lord Nelson at Palermo, Sicily, that a large enemy fleet had passed through the straits of Gibraltar.

Firing was heard at around midnight and by morning the boats returned, bringing with them a large settee carrying wine, and the Virginie.

[22] In 1847 the Admiralty authorised the issue of the Naval General Service medal with clasp "Peterel 21 March 1800" to all surviving claimants from the action.

Austen sent in a pinnace and ten men who set fire to the Turkish ship to forestall any further French attempts to plunder it, especially of its guns and ammunition.

On 8 March 1801, Peterel, Cameleon, and another sloop supported the British landing at Abu Qir Bay by stationing themselves close in with their broadsides towards the shore.

[26] Because Peterel served in the navy's Egyptian campaign (8 March to 2 September 1801), her officers and crew qualified for the clasp "Egypt" to the Naval General Service Medal that the Admiralty authorized in 1850 for all surviving claimants.

[33] At some point in 1805 or 1806, Peterel captured the ship Hoffnung, in sight of the armed schooner Arab, Lieutenant Carpenter, commander.

Peterel repulsed the attempt and then gave chase as Captain Dominique Houx (or Diron) of Superbe realized his mistake and made his escape.