"Berkley Castle" was then employed as an air-sea rescue ship until mid 1946, when she was placed in reserve at Harwich. She was refitted at London in 1949, before returning to reserve. On the night of 31 January/1 February 1953, "Berkeley Castle" was in dry dock at the naval dockyard at Sheerness, Kent when Sheerness was struck by the North Sea flood of 1953. The tidal surge overtopped the dock gates, flooding the dry dock and causing "Berkeley Castle" to float off her blocks and capsize. She was refloated, but damage was such that she was beyond economic repair and was not repaired. She was placed on the disposal list in 1955. She arrived at Thos W Ward's Grays in Essex breaking yard on 29 February 1956 for scrapping.