The keel for "Prinz Eugen" was laid down at the Stabilimento Tecnico Triestino shipyard in October 1861. She was launched on 14 June 1862, and after fitting-out work was completed in March 1863, she was commissioned into the Austrian fleet. Owing to her open bow, she took on water excessively and as a result, tended to handle poorly. During the Second Schleswig War in 1864, "Prinz Eugen" and the two s remained in the Adriatic to protect Austria's coastline while a squadron was sent to the North Sea to attack Denmark. In June 1866, Italy declared war on Austria, as part of the Third Italian War of Independence, which was fought concurrently with the Austro-Prussian War. Rear Admiral Wilhelm von Tegetthoff brought the Austrian fleet to Ancona on 27 June, in an attempt to draw out the Italians, but the Italian commander, Admiral Carlo Pellion di Persano, refused to engage Tegetthoff.