Dawson was promoted to substantive captain on 30 June 1969. He was the Director of Naval Operations (DNO) at Naval Headquarters (NHQ) during the Indo-Pakistan War of 1971. Some of the Indian Navy's most famous operational successes, including Operation Trident, Operation Python and the naval blockade of East Pakistan were accomplished during his tenure as DNO. Dawson was awarded the Ati Vishisht Seva Medal (AVSM) for his services and leadership during the conflict.