Assigned to duty in the newly organized Mortar Flotilla, she sailed from New York 4 February 1862, arriving on station at the mouth of the Mississippi River on 11 March.

Repaired at Baltimore, Maryland, in the summer of 1862 Dan Smith sailed for duty with the Potomac Flotilla 25 October.

From 30 October to 22 July 1863 the schooner cruised the Potomac, Rappahannock, and Piankatank Rivers and various creeks of Virginia on guard and picket duty.

On 22 July 1863 Dan Smith entered Washington Navy Yard to prepare for duty with the South Atlantic Blockading Squadron.

This article incorporates text from the public domain Dictionary of American Naval Fighting Ships.