 Transferred to the United States Navy on 30 September 1862 as USS "De Soto", she was renamed USS "General Lyon" on 24 October 1862 with Master John R. Neeld in command.After undergoing extensive repairs at Cairo, Illinois, "General Lyon" saw duty as ordnance, stores, and dispatch ship for the U.S. Navy′s Mississippi Squadron.Leaving Cairo on 2 February 1863, she operated for the next two and a half years on the western waters.