Promoted to captain in 1859, he took command of the 21-gun corvette HMS Racoon from commissioning in 1863 until 1866, during which time Queen Victoria's second son, Alfred, Duke of Edinburgh (1844–1900) served on board as a lieutenant.

He retired from active service in 1866, and was appointed Knight Commander of the Order of the Bath (KCB) that year (advanced to GCB in 1887).

They had four children: Prince Victor's only son Edward, also known as Count Gleichen, became a major general in the British Army.

A popular legend, confirmed in his daughter Helena's biography, was that Count von Gleichen was responsible for the introduction of the smoking room at Windsor Castle.

Afterwards, the Queen remonstrated Count von Gleichen but arranged for a smoking room to be built in another part of the castle.