It caused moderate damage in North Carolina while it looped offshore and after it made landfall as a Category 2 hurricane.

Forming on September 8, Diana moved northward and wandered across North Carolina for a couple of days during mid-September, dropping heavy rainfall.

The origins of Hurricane Diana can be traced back to a stalled out area of low pressure just north of the Bahamas along the tail end of a cold front on September 6.

With weak steering currents, Diana gradually intensified as it slowly moved towards the west over the next day, coming within 50 miles (85 km) of Cape Canaveral, Florida, before taking a sharp turn towards the north-northwest.

[1] Under weak steering currents while detached to the front, Diana drifted westward, and came within 50 miles (85 km) of the Florida coast.

Rather than continuing westward, where it would have hit near Cape Canaveral, Diana turned to the northwest where it paralleled the coastline.

The high pressure system that built in after Diana looped weakened, allowing the storm to move to the north and east.

After crossing the Outer Banks, Diana accelerated to the northeast, and after restrengthening to a 70 miles per hour (110 km/h) storm, became extratropical near Nova Scotia on September 16.

[4] Along the North Carolina coastline, state troopers were deployed to assist residents in evacuating and preparing for the hurricane.

Approximately 94 families were relocated from their mobile homes near Beaufort, North Carolina by state officials.

[9] Following the storm, President Ronald Reagan declared five North Carolina counties as a federal disaster area, allowing the affected regions to receive government funds and assistance.