Following the outbreak of war with France, the flank companies of the regiment sailed for the West Indies and in March 1794 took part in the capture of Martinique. Meanwhile, the battalion companies of the 38th served in the Low Countries with the Duke of York. In 1796 the regiment was reunited in the West Indies and in May 1796 took part in the capture of Saint Lucia and the capture of Trinidad in 1797. After taking part in the capture of the Cape of Good Hope in January 1806, it embarked for South America where it fought under General William Beresford at the capture of Montevideo in January 1807 and at the attack on Buenos Aires in July 1807 during the British invasions of the River Plate.