In October 1939, the Lady Nelson was requisitioned by the Royal Canadian Navy as ocean boarding vessel (OBV), but the conversion was not completed and the ship was returned to the owner.

Post-war:
1946 decommissioned as hospital ship and used as troop transport. In October 1946 returned to owner and resumed service until November 1952. 1953 sold to Egypt and renamed Gumhuryat Misr for Khedivial Mail Line, Alexandria. 1960 renamed Alwadi for same owner. 1968 broken up in Egypt.

At 04.49 hours on 10 Mar, 1942, U-161 fired two torpedoes into the harbour of Port Castries, St. Lucia. The first torpedo hit the Lady Nelson, which caught fire and sank by the stern in shallow waters. The second torpedo struck the Umtata, which sank by the stern. However, both vessels were later salvaged and repaired.

Three crew members and 15 passengers of the 116 crew members, 110 passengers and two gunners aboard Lady Nelson and seven dock workers were lost.
On 16 April, the ship was salvaged, temporarily repaired and left for Mobile on 11 May. Later converted to a hospital ship for 518 patients and commissioned on 22 Apr, 1943.