As part of Brigadier General Thomas A. Morris' Indiana Brigade (of Major General George B. McClellan's Army of West Virginia), the 7th Indiana participated in the Rich Mountain Campaign from July 6 to 17. The regiment saw action at Laurel Hill (July 7), Belington (July 8), the Battle of Corrick's Ford (July 12–14), and in the pursuit of Brig. Gen. Robert S. Garnett's forces (July 15–17). The regiment was mustered out of service on August 2, 1861.