"Falmouth" left active service in 1980, when she was transferred to the Standby Squadron at Chatham, and by early 1982 she was being considered for disposal as a result of the 1981 Defence White Paper, which proposed cuts in the Royal Navy's surface fleet. Argentina's invasion of the Falkland Islands in April 1982 changed these plans, and "Falmouth" was given a refit and returned to active duty, although she did not take part in the Falklands War. "Falmouth" carried out a patrol in the South Atlantic from May 1983, returning to Britain in September that year. In March 1984, she was deployed to the Middle and Far East, returning home in August that year.