Admiral Graves, taking command of the combined fleet, now nineteen ships, sails south, and arrives at the mouth of the Chesapeake on September 5.

His progress was slow; the poor condition of some of the West Indies ships (contrary to claims by Admiral Hood that his fleet was fit for a month of service) had necessitated repairs en route.

Graves is also concerned about some ships in his own fleet; Europe in particular has difficulty maneuvering.

French and British patrol frigates each spot the other's fleet around 9:30 am; both at first underestimate the size of the other fleet, leading each commander to believe the other fleet is the smaller fleet of Admiral de Barras.

When the true size of the fleets become apparent, Graves assumes that de Grasse and Barras have already joined forces, and prepares for battle; he directs his line toward the bay's mouth, assisted by winds from the north-northeast.

By 1:00 pm, the two fleets are roughly facing each other, but sailing on opposite tacks.

In order to engage, and to avoid some shoals (known as the Middle Ground) near the mouth of the bay, Graves around 2:00 pm orders his whole fleet to wear, a maneuver that reverses his line of battle, but enabled it to line up with the French fleet as its ships exit the bay.

This places the squadron of Hood, his most aggressive commander, at the rear of the line, and that of Admiral Francis Samuel Drake in the van.

At about 4:00 pm, over six hours since the two fleets first sight each other, the British—who have the weather gage, and therefore the initiative—open their attack.

The battle begins with HMS Intrepid opening fire against the Marseillais, its counterpart near the head of the line.

The action very quickly becomes general, with the van and center of each line fully engaged.

The French, in a practice they are known for, tend to aim at British masts and rigging, with the intent of crippling their opponent's mobility.

The effects of this tactic are apparent in the engagement: Shrewsbury and HMS Intrepid, at the head of the British line, become virtually impossible to manage, and eventually fall out of the line.

The rest of Admiral Drake's squadron also suffers heavy damage, but the casualties are not as severe as those taken on the first two ships.

The angle of approach of the British line also plays a role in the damage they sustain; ships in their van are exposed to raking fire when only their bow guns canbe brought to bear on the French.

The French van also takes a beating, although it is less severe.

Sunset brings an end to the firefight, with both fleets continuing on a roughly southeast tack, away from the bay.

Five ships of Graves' fleet sre either leaking or virtually crippled in their mobility.

Nonetheless, Graves will maintain a windward position through the night, so that he will have the choice of battle in the morning.

Ongoing repairs make it clear to Graves that he will be unable to attack the next day.

Graves holds council with Hood and Drake on the night of September 6.

During this meeting Hood and Graves supposedly exchanged words concerning the conflicting signals, and Hood proposes turning the fleet around to make for the Chesapeake.

Graves rejects the plan, and the fleets continue to drift eastward, away from Cornwallis.

The French success leaves them firmly in control of Chesapeake Bay, completing the encirclement of Cornwallis.

In addition to capturing a number of smaller British vessels, de Grasse and Barras have assigned their smaller vessels to assist in the transport of Washington's and Rochambeau's forces from Head of Elk to Yorktown.

The French fleet at times on September 8 and 9 gains the advantage of the wind, and briefly threatens the British with renewed action.

French scouts spy Barras' fleet on September 9, and de Grasse turns his fleet back toward Chesapeake Bay that night.

Graves, arriving on September 12, had found that Barras had arrived two days earlier.

Graves had ordered the Terrible to be scuttled on September 11 due to her leaky condition, and is notified on September 13 that the French fleet is back in the Chesapeake; he still does not learn that de Grasse's line had not included the fleet of Barras, because the frigate captain making the report had not counted the ships.

In a council held that day, the British admirals decide against attacking the French.

Graves now turns his battered fleet toward New York.

Admiral Graves, after effecting repairs in New York, sails from New York on October 19 with twenty-five ships of the line and transports carrying seven thousand troops to relieve Cornwallis.

It is two days after Cornwallis surrenders at Yorktown.

General Washington acknowledges to de Grasse the importance of his role in the victory.

The eventual surrender of Cornwallis will lead to peace two years later and British recognition of the independent United States of America.

The British fleet's arrival off Sandy Hook on September 20 sets off a flurry of panic among the Loyalist population.

The news of the defeat will also not be received well in London.

King George III will write (well before learning of Cornwallis's surrender) that "after the knowledge of the defeat of our fleet [...] I nearly think the empire ruined.” (Larrabee, Harold A (1964). Decision at the Chesapeake. New York: Clarkson N. Potter.)

Graves and Clinton learn only on September 23 that the French fleet in the Chesapeake numbers thirty-six ships.

This news comes from a dispatch sneaked out by Cornwallis on September 17, accompanied by a plea for help.

The articles of capitulation are signed on October 19, 1781.

Signatories include Washington, Rochambeau, the Comte de Barras (on behalf of the French Navy), Cornwallis, and Captain Thomas Symonds (the senior Royal Navy officer present).

Cornwallis' British men are declared prisoners of war, promised good treatment in American camps, and officers are permitted to return home after taking their parole.

At 2:00 pm the allied army enters the British positions, with the French on the left and the Americans on the right.

The British have asked for the traditional honors of war, which will allow the army to march out with flags flying, bayonets fixed, and the band playing an American or French tune as a tribute to the victors.

However, Washington firmly refuses to grant the British the honors that they had denied the defeated American army the year before at the Siege of Charleston.

Consequently, the British and Hessian troops march with flags furled and muskets shouldered, while the band is forced to play "a British or German march."

American history books will recount the legend that the British band played "The World Turn'd Upside Down", but the story is apocryphal.

Cornwallis had refused to attend the surrender ceremony, citing illness.

Instead, Brigadier General Charles O'Hara leads the British army onto the field.

O'Hara first attempts to surrender to Rochambeau, who shakes his head and points to Washington.

O'Hara then offers his sword to Washington, who also refuses and motions to Benjamin Lincoln.

The surrender finally takes place when Washington's second-in-command accepts the sword of Cornwallis' deputy.

The British soldiers march out and lay down their arms in between the French and American armies, while many civilians watch.

At this time, the troops on the other side of the river in Gloucester also surrender.

The British soldiers had been issued new uniforms hours before the surrender and until prevented by General O'Hara some throw down their muskets with the apparent intention of smashing them.

Others weep or appear to be drunk.

In all, eight thousand troops, two hundred and fourteen artillery pieces, thousands of muskets, twenty-four transport ships, wagons and horses have been captured.

The French casualties are sixty killed and one hundred and ninety-four wounded and the American casualties are twenty-eight killed and one hundred and seven wounded: a grand total of eighty-eight killed and three hundred and one wounded.

The British official casualty return for the siege list one hundred and fifty-six killed, three hundred and twenty-six wounded and seventy missing.

Cornwallis surrenders seven thousand and eighty-seven officers and enlisted men in Yorktown when he capitulates and a further eight hundred and forty sailors from the British fleet in the York River.

'Another eighty-four prisoners had been taken during the assault on the redoubts on October 16.

Since only seventy men are reported as missing, this would suggest that fourteen of the men officially marked down as ‘killed’ had in fact been captured.

This gives a grand total of one hundred and forty-two killed, three hundred and twenty-six wounded prisoners and seven thousand six hundred and eighty-five other prisoners.

George Washington refuses to accept the Tenth Article of the Yorktown Articles of Capitulation, which grants immunity to American Loyalists, and Cornwallis fails to make any effort to press the matter.

The British fleet sent by Clinton to rescue the British army arrives on October 24, 1781, five days after the battle had ended.

The fleet had picked up several Loyalists who had escaped on October 18, and they had informed Admiral Thomas Graves that they believe Cornwallis had surrendered.

Graves had picked up several more Loyalists along the coast, and they had confirmed this fact.

Graves sights the French Fleet, but chooses to leave because he is outnumbered by nine ships, and thus he sends the fleet back to New York.