During the same month and year, Henry Lee, a native of Westmoreland County, Virginia, who had been a captain in Colonel Thomas Bland's legion of Virginia cavalry, joined Washington's army in Pennsylvania. His personal achievements were many in this assignment and his excessive courage was noted by Washington. He was soon promoted to major and was given special command of three troops of horsemen plus an infantry company. He became a great annoyance to the British while they were on the march as well as in camp. This comparatively small group became so distinguished that they earned the tide of "Lee's Legion" and Henry Lee was nicknamed "Light Horse Harry" Lee. He later captured an important British post at Paulus Hook, New Jersey, and fought diligently also in South Carolina, North Carolina and Georgia. He was awarded a gold medal by the Continental Congress for his brilliant cavalry exploits during the Revolutionary War.

On May 9, 1779, a Britisher, General George Collier, arrived at Hampton Roads with approximately 2,000 troops. They used Portsmouth as a base and after making several raids in that area, destroyed not only the American navy yard at Portsmouth (called Gosport at this time) but also large supply deposits stored there. After awaiting reinforcements from General Henry Clinton in New York, they decided to abandon Virginia because they believed a Virginia blockade had prevented these reinforcements from arriving. Upon their departure, the inhabitants of Virginia were once more able to carry on necessary and important trade with the West Indies.

During this same year, a most unusual naval feat occurred in the Revolutionary War. John Paul Jones was in command of an American ship called the "Bonhomme Richard" off the coast of England when he spotted a British warship, the "Serapis." After fierce fighting between the two ships, although his own ship sank, he captured the "Serapis" and sailed away in it. Virginia had the honor of providing the greatest naval hero of the Revolutionary War, John Paul Jones.

Thomas Jefferson was the second elected Governor of the Commonwealth of Virginia. He held this office during most of the Revolutionary War Period. In addition to peace and military warfare, Jefferson had personal interest in religion and in education. In 1779, he wrote a proposed "Statute of Virginia for Religious Freedom." He believed that the State Constitution had not included practical religious liberty although the theory of religious freedom had been guaranteed. Jefferson's proposal was finally passed by the General Assembly of Virginia in 1785. It is considered as one of the greatest Virginia documents because it guaranteed religious freedom to all.

While serving as Governor, Jefferson proposed a plan for education called "A Bill for the More General Diffusion of Knowledge." He based this plan upon the premise that democracy would be more successful if greater numbers of individuals were educated. The plan was an attempt on his part to encourage the establishment of free public schools for the children of the wealthy and the poor alike. This proposal suggested three years of free elementary schooling for all children regardless of their social or financial condition, free secondary education for those individuals who were mentally equipped to gain from this experience and free higher education for those who had displayed above average scholastic qualifications. The bill was not passed, but it resulted in a consideration of the possibility of public education at this time. Another example of Jefferson's enthusiastic interest in education was his personal establishment, in 1779, of a chair of law at William and Mary College in honor of a former teacher, a great lawyer and a personal friend, George Wythe. As a result, George Wythe had the distinction of being the first professor of law in the United States in the first law school in America.

While Jefferson was still Governor, the capital was moved in 1780 from Williamsburg to Richmond in an effort to escape the invading British soldiers and to provide a safer place of protection for the future. Lord Cornwallis, at this time, was proceeding with his plans to move north through the Carolinas to Virginia. Cornwallis had had a great victory at Camden, South Carolina, and had decided to persuade many of the western mountain people to fight on behalf of the British. Americans who favored the British in this revolution were called "Tories" and those who favored the Americans were called "Patriots."

Cornwallis sent Major Patrick Ferguson and approximately a thousand Tories to threaten these mountain folk in North Carolina and Southwest Virginia to the extent of marching over their land, causing destruction and hanging their leaders unless they discontinued their past resistance to the British army. Two American military frontiersmen, Colonel John Sevier and Colonel Isaac Shelby, decided to organize a group of riflemen and attack Ferguson before he had the opportunity to cross the mountains and attack them. They contacted Colonel William Campbell whose duty had been to protect the lead mines in Wythe County whose resources were being mined and smelted for equipment for the American soldiers. Colonel Campbell was invited to join Colonel Sevier and Colonel Shelby in their attack against Ferguson. He accepted and later was selected by the officers as their commander. Ferguson heard of their plan and selected a wooded mountain ridge on the border between North Carolina and South Carolina, called King's Mountain, for his battlefield. Ferguson's troops far outnumbered Colonel Campbell's troops and were much better equipped with military supplies. Colonel Campbell's troops, however, defeated the British badly on October 7, 1780. Major Ferguson and two hundred other Britishers were killed in battle. This Battle of King's Mountain is often called the turning point of the Revolutionary War in the South because not only did it upset the military strategy of Cornwallis but it also encouraged the southern patriots at a time when the morale had been low. Colonel Campbell was promoted to a Brigadier-General as a direct result of this battle. The British in the meantime had sent General Alexander Leslie to Portsmouth with approximately 3,000 troops. After the severe British defeat at King's Mountain, he left Portsmouth and headed his troops south to join Cornwallis.

Morale in Virginia at this time was very low because there was a great shortage of clothing, military equipment and supplies, there was a lack of money in the state treasury, Virginia soldiers were fighting outside their state and British soldiers in large numbers were stationed in eastern and central Virginia. General William Phillips and Cornwallis had seized and destroyed property valued at ten million dollars in eastern Virginia alone by the spring of 1781.

Meanwhile, by March 1, 1781, the Articles of Confederation had been ratified by all the states and thereby became the basis for the central government of the United States. Since Maryland had refused to ratify the Articles until the states which owned large western land-holdings would cede them to the central government, Virginia, following a pattern of New York State, surrendered most of its large holding claims in 1784. By this action, Virginia ceded the Northwest Territory to the new nation, the United States. The entire region beyond the Ohio River (now comprising the states of Ohio, Indiana, Illinois, Michigan and Wisconsin) had rightfully been claimed by Virginia and cession to the United States for the beginning of its public domain was a most generous gesture on the part of Virginia. This action played an important part in creating a stronger feeling of unity on the part of the thirteen original colonies and in giving Virginia another nickname, "Mother of States."