In November, Colonel Kitchener, who had succeeded Major Watson, reported "the collapse of Osman Digna's power," and a season of greater tranquillity than Souakim had known for years was experienced.

In January, 1887, affairs at Souakim had even further settled down, and many of the hostile tribes expressed a desire to come to terms, but, in June, news arrived that from 2,000 to 3,000 Dervishes, mostly Baggaras, were advancing from Kassala to relieve Tokar, at that time besieged by the friendlies. The arrival of the Baggaras at Tokar tended to revive the fanatical spirit at that place, but had not much influence on the surrounding tribes, who refused to present themselves there when summoned by Osman Digna.

In July, Osman was again called to Omdurman, and in his absence nothing particular was done in the neighbourhood of Souakim. During the autumn, things looked so peaceful that the garrison was reduced by the withdrawal of two battalions, and news of this circumstance reaching Osman, who had then returned to Kassala, he at once collected some 5,000 men and marched to Handoub. By 18th December he was again master of the whole country up to the walls of Souakim, which once more was in a state of siege. On 17th December, an attack was made on the Water Forts, and repulsed. A deserter reported that at Handoub and Tamaai a fighting force of 5,000 men was preparing to capture Souakim by a rush, and that the scheme would be carried out at daybreak very shortly.

In January, 1888, frequent night attacks were made; but they were invariably repulsed by the fire from the men-of-war in the harbour. On the 17th, a party of friendlies attacked the Dervish camp at daybreak. Mounted troops from Souakim went in support. The friendlies surprised and captured the enemy's camp. Then the Dervishes scattered in the pursuit re-entered the position from the rear, and drove off the friendlies with considerable loss. The whole Egyptian force then retreated to Souakim, pursued for four or five miles by the victorious Dervishes. In this engagement Kitchener and Lieutenant McMurdo were wounded, and eleven soldiers and friendlies were killed. As a result of the engagement, Kitchener was warned that in future he should not take part in similar operations with British officers or Egyptian regulars.

The intention was to capture Osman Digna, but although seen in the distance, he succeeded in escaping at the moment when the fortune of war appeared to be going against him.

Emboldened by this success, the Dervishes began to display increased activity round Souakim, the neighbourhood of which was infested with marauding bands. On the 3rd March, a large party established themselves by night at a disused position called Fort Hudson, and kept up a continuous fire on the town. On the morning of the 4th, numbers of the enemy were seen advancing, and H.M.S. Dolphin opened fire at 10 a.m. The Egyptian forces, to the number of 450 men, advanced to endeavour to drive the enemy from Fort Hudson, the friendly Amarar tribe assisting. The position, however, was too strong, and they were repulsed. To make matters worse, just at the moment when a reinforcement of the enemy necessitated the retirement a shell from the man-of-war, aimed at the Dervishes, burst among the friendlies, who, suddenly scared, fell back in disorder upon the regulars, who had nothing left to do but retreat with all possible speed. The Dervish force maintained its position during the remainder of the day under a heavy cross-fire. At nightfall the Dervishes drew off and made no further attempt to reoccupy the position. The Egyptian loss in this highly unsuccessful sortie was Colonel Tapp and eight men killed and seventeen wounded, without counting the poor friendlies.

After the affair of the 4th March things resumed a comparatively quiet condition for some months. The enemy's cavalry from time to time came within range, and a few shots were exchanged, but nothing serious was attempted on either side. The inaction of the blockading force was doubtless due in great measure to the dissensions which at this period broke out amongst the hostile tribes, some of whom were anxious to take Souakim by assault, whilst others deemed it useless to make the attempt. The result was a series of quarrels, which nearly led to actual fighting.

On the night of the 17th September, however, the aspect of things changed, and without any previous warning a force of some 500 men of the Jaalin and Baggara tribes intrenched themselves at a distance of 1,000 yards from the Water Forts, with the intention of cutting off the water supply, and commenced firing on the town. This was kept up continuously for some time by day and night, and frequent casualties occurred. On the 22nd the enemy placed a gun on the ridge between the Water Forts, and shelled the town until compelled by the fire from the lines to withdraw.

It was now evident that at any moment a determined attempt might be made to capture the town, and reinforcements were urgently called for. In response to the appeal, an additional vessel of war and another battalion were sent to Souakim.

Meanwhile, the besiegers still continued active in the trenches, which they pushed forward to within 600 yards of the defensive works. Their fire began to get exceedingly accurate, though but little harm was done.