[3] Back in Spain in 1778, Caro was appointed colonel of the Almansa Dragoon Regiment and during the Anglo-French War (1778–1783) he sailed for Menorca with three dismounted cavalry squadrons of his regiment, to join Crillon's Invasion of Minorca (1781),[3] where he distinguished himself at the siege and storming of the St. Philip's Castle, and which resulted in his promotion to Cavalry brigadier, in February 1782, and being appointed governor of the island.

That same year, his nephew Pedro Caro y Sureda, 3rd Marquis of La Romana, then a brigadier, transferred to his uncle's headquarters, from which he led several brief actions, including the storming of the "almost inaccessible" castle at Chateau-Pignon,[4] in the commune of Saint-Michel, Pyrénées-Atlantiques, where he captured the French General Gennetière on 6 June 1793.

[3] Having travelled to Madrid to request, unsuccessfully, reinforcements, on his return to the front he was faced with an even larger French force which he managed to fend off at La Rhune (26 March 1794).

[3] In the first week of June, Muller's French troops launched attacks at Berderitz, on the mountain passes at Izpegui and Amaiur-Maya and at Roncesvalles, but was repelled and towards the end of the month, Caro made a counterattack which he was forced to suspend and then withdraw back to his lines.

[3] Returning to Madrid at the beginning of the following month to demand reinforcements, reason for which he resigned his command,[3] being substituted by Lieutenant general Martín Álvarez de Sotomayor, the Count of Colomera.