He took command of the 98-gun in May 1782 and went out with Richard Howe, 1st Earl Howe's fleet to relieve Gibraltar. Faulknor saw action at the Battle of Cape Spartel on 20 October 1782, in which "Princess Royal" had one man killed. The fleet then returned to Britain, where Faulknor continued in command of "Princess Royal" while she was the Portsmouth guardship. He moved to the 74-gun in 1785, still based at Portsmouth, and commanded her until April 1786.