Dunovant was cashiered and dismissed from the service for drunkenness on November 8, 1862 but on July 28, 1863 he was given another chance to command the 5th South Carolina Cavalry Regiment. He served the State in this capacity, until ordered to Virginia on May 18, 1864. There he and his regiment were under the brigade command of Brigadier General Matthew C. Butler, in Major General Wade Hampton's division of Major General Jeb Stuart's cavalry corps, which was commanded by Major General Hampton after Stuart's death at the Battle of Yellow Tavern. Brigadier General Matt Whitaker Ransom reported the regiment under his leadership did admirable service at the Second Battle of Drewry's Bluff, or Second Battle of Fort Darling, on May 16, 1864, and subsequently in the encounters with Philip Sheridan's cavalry. He provided gallant services with Butler's brigade at the Battle of Cold Harbor, Battle of Trevilian Station and other engagements in the Overland Campaign and early Siege of Petersburg, thereby redeeming his reputation. He was wounded in the left hand at the Battle of Haw's Shop on May 28, 1864.