Admiral Sir George Cockburn commanded a British fleet blockading Chesapeake Bay. In early 1813, Cockburn and Admiral Sir John B. Warren planned to attack the Gosport Shipyard in Portsmouth and capture the frigate U.S.S. Constellation. Brigadier General Robert B. Taylor commanded the Virginia Militia in the Norfolk area. Taylor hastily built defenses around Norfolk and Portsmouth, but he had no intentions of letting the British penetrate as far as those two cities. Instead Taylor commandeered several ships and created a chain barrier across the Elizabeth River between Fort Norfolk and Fort Nelson. He next built the Craney Island Fort on the island of the same name at the mouth of the Elizabeth River near Hampton Roads. Since the Constellation was already penned up in the Chesapeake because of the British blockade, the ship's crew was used to man some of the redoubts on the island. In all, 596 Americans were defending the fortifications on Craney Island.

On the morning of June 22, 1813, a British landing party of 700 Royal Marines and soldiers of the 102nd Regiment of Foot along with a company of Independent Foreigners came ashore at Hoffler's Creek near the mouth of the Nansemond River to the west of Craney Island. When the British landed, the defenders realized they were not flying a flag and quickly raised an American flag over the breastworks. The defenders fired, and the attackers began to fall back, realizing that they could not ford the water between the mainland and the island (the Thoroughfare) under such fire. British barges manned by sailors, Royal Marines, and the other company of Independent Foreigners then attempted to attack the eastern side of the island. Defending this portion was a company of light artillery under the command of Captain Arthur Emmerson. Emmerson ordered his gunners to hold their fire until the British were in range. Once they opened fire, the British attackers were driven off, with some barges destroyed, and they retreated back to the ships. The Americans captured the 24-oar barge Centipede, flagship of the British landing force, and mortally wounded the commmander of the amphibious assault force, Sir John Hanchett, illegitimate son of King George III.