She was withdrawn from service in 1938 and laid up at Netley until she was bought by the Admiralty for use as an accommodation ship in Freetown, Sierra Leone for Naval personnel and survivors of sunken ships.
In 1945, as towing back to England would not be cost effective, she was towed 60 miles out to sea by the tug Empire Lawn and sunk by gunfire and depth charges from the armed trawler Cape Warwick, HMS Porchester Castle and HMS Launceston Castle.
HMS Edinburgh Castle being towed out of Freetown Harbour by
HMS Launceston Castle and the tug Empire Lawn.
HMS Edinburgh Castle heels over to starboard and sinks in 45 fathoms of water after receiving her final death blow from the corvette