"Princess Royal" sailed from Cromarty on 28 September to rendezvous with a Canadian troop convoy bound for the United Kingdom. She rejoined the 1st BCS on 26 October, but was detached again a few days later to reinforce the North Atlantic and Caribbean Squadrons in the search for Admiral Graf Spee's German East Asia Squadron after it destroyed the British West Indies Squadron on 1 November during the Battle of Coronel. "Princess Royal" arrived at Halifax on 21 November, then spent several days off New York City before she steamed down to the Caribbean to guard against the possibility that Graf Spee would use the Panama Canal. The East Asia Squadron was sunk off the Falkland Islands on 7 December, and "Princess Royal" left Kingston, Jamaica, en route to the UK on 19 December.