The remnants of the storm moved ashore between Louisiana and Mississippi early on July 25, prompting severe thunderstorm and tornado warnings in the area.

Effects were more severe from the remnants of Bonnie, with heavier rain amounts and higher winds reported near the Gulf Coast, especially in Louisiana.

[3] Although upper-level wind shear remained somewhat adverse, a process of slow development became evident by July 19 as surface pressures began to fall.

[4] The wave proceeded along the extreme northeastern Caribbean,[5] where convective activity waxed and waned due to periods of variable wind shear and brief land interaction with Hispaniola.

[6][7] By July 22, thundershower activity reestablished over the Bahamas, with a distinct area of low pressure centered between the islands of Acklins and Great Inagua.

[8] Satellite observations confirmed a closed circulation,[9] leading the National Hurricane Center (NHC) to issue the formation of Tropical Depression Three around 1500 UTC.

[10] Later that day, minimum pressure dropped to 1006 mbar (29.74 inHg), and satellite imagery showed an establishment of favorable outflow in nearly all quadrants.

Although its cloud pattern remained disorganized—with the circulation center disassociated from the deepest convection[11]—a reconnaissance aircraft flight into the cyclone found that the winds had increased.

[14] Though tropical storm-force winds prevailed, they were confined to a few rainbands to the north and east of the center at that time, with the deepest convection dislocated over southeast Florida.

In addition, a second reconnaissance flight affirmed a lack of significant winds; it is estimated the cyclone lost tropical storm status around 1800 UTC that same day.

[18] Embedded within a well-established steering flow, Bonnie further degenerated to a tight swirl of low clouds, with no more than a few remaining patches of strong thunderstorms.

[19] Subsequent satellite images confirmed Bonnie no longer maintained a definable structure; following the final advisory by the NHC, the system was pronounced dissipated while located about 100 mi (160 km) from the mouth of the Mississippi River.

In Florida, a tropical storm watch was issued for Golden Beach northward to Jupiter Inlet, and included Lake Okeechobee.

[24] Along the Gulf Coast, concerns arose regarding the potential effects of the storm on the BP oil spill earlier in the year.

[25] On July 23, Admiral Thad Allen ordered the oil spill site to be evacuated, as Bonnie posed a safety threat to nearly 2,000 people in that area.

In Puerto Rico, one person drowned after being caught in a swollen river, and roughly 1,500 people required evacuation in the Dominican Republic.