درنة
"Paladin" also took part in other Mediterranean operations, including the passage of convoys to Malta from Egypt after the relief of the island in November, and providing anti-aircraft protection for Alexandria. On 17 February 1943, "Paladin" was part of the escort of a convoy between Tripoli and Alexander. The convoy was off Derna, Libya, when it was spotted by the . "Paladin" detected the submarine on her sonar and dropped a pattern of five depth charges. These badly damaged the submarine, forcing its commander to surface the submarine. On surfacing "U-205" was attacked by a Bisley aircraft of 15 Squadron of the South African Air Force, and came under heavy fire from "Paladin" and the destroyer "Jervis", forcing her crew to quickly abandon ship and disrupting attempts to scuttle the submarine. "Paladin" and "Jervis" picked up 42 survivors, while a boarding party from "Paladin" attempted to recover codebooks from "U-205", with the submarine's short signal code book and bigram tables recovered. The corvette took "U-205" in tow, but the submarine sank under tow before reaching the shore.