Following the outbreak of war between Nazi Germany and the Soviet Union in June 1941, she was captured by the Germans and pressed into Kriegsmarine service.

She was sunk on 21 October 1942 by a Royal New Zealand Air Force torpedo bomber, while carrying a load of prisoners of war intended for slave labour in German-occupied Norway.

[1][3][4][5] She was a single deck, steel-hulled ship with diesel engines, electric lights, wireless radio and a cruiser stern.

[4][6][7] On her last mission she was used as a prisoner of war transport from Stettin to Ålesund, via Kristiansand, in order to bring slave labourers to work for the Nazi occupants.

[5] Hampden XA-B, piloted by Flying Officer J.J. Richardson, attacked at an altitude of 60 feet (18 m), launching a torpedo at a range of 550 metres (1,800 ft).

The torpedo bomber escaped unscathed in cloud cover, despite heavy anti-aircraft fire and an attempted intercept by the escorting Ju 88.

[5][Note 1] Following the torpedo hit panic broke loose on board Palatia, with prisoners attempting to break out of the cargo holds.

[12][13][Note 2] During the commemoration of the 50th anniversary of the end of the Second World War in Europe, the municipality of Lindesnes held a memorial service on 6 May 1995 in remembrance of the Palatia disaster.

The monument was built on the initiative of Sørlandet krigsminneforening (English: Southern Norway war memorial society) and Lindesnes municipality.