A fresh breeze sprang up, and the fortunes of the fight changed. The Americans still had the advantage of the wind, for Perry was able to choose both position and distance, while Barclay's ships became unmanageable for lack of proper seamen. The American fleet was now drawn up in line. The Niagara bore up to pierce the British line. Passing between the Lady Prevost, Little Belt, and Chippewa on the port side and the Detroit, Queen Charlotte, and Hunter upon the starboard, she fired heavy broadsides both ways. The Detroit, anticipating the manoeuvre, attempted to wear, but in so doing ran foul of the Queen Charlotte. In this helpless condition the two British ships remained for some time. Perry, promptly availing himself of this accident, bore down upon the distressed vessels, pouring in broadside after broadside with deadly effect. The Detroit had already received rough treatment in combat with the Lawrence; and the smaller vessels now also made her a target, the Somers, Porcupine, Tigress, and Caledonia, which had closed up in the rear, keeping up a deadly fire astern.

Never in any naval action was the loss greater in proportion to the number of men engaged. The encounter had been so severe that every officer on the Detroit was either killed or wounded. Barclay's thigh was badly shattered and he had also been severely wounded in the shoulder. So deadly had been the fire from the American guns that three-fourths of his men were disabled. Without officers to direct or men to fight, resistance was no longer possible. All that perseverance and courage could do had been done. The brave Barclay was compelled to yield at last to a superior force and to double the weight of metal. The two ships so helplessly entangled were the first to strike their colours, and their example was followed by the Hunter and Lady Prevost. The Little Belt and the Chippewa endeavoured to escape, and led the Trippe and Scorpion a lively chase before they were eventually captured.

Cooper in his naval history remarks:

Stress was laid at the time on the fact that a portion of the British crews were Provincials, but the history of this continent is filled with instances which went to increase the renown of the mother country without obtaining any credit for it. The hardy frontier men of the American lakes are as able to endure fatigue, as ready to engage and as constant in battle as the seamen of any marine in the world. They merely require good leaders, and this the English appear to have possessed in Captain Barclay and his assistants.

It was three o'clock in the afternoon when the flag of the Detroit was lowered, and Captain Barclay with his officers, amidst the dead and dying who cumbered her decks, gave up their swords to Perry on the Niagara. The American commander could not but feel the greatest admiration for his courageous opponent. Courteous as he was brave, Perry begged the British officers to retain their swords.

For three hours the cannon had thundered over Lake Erie on that fateful day, but, after the opening encounter, the manoeuvres of the ships were lost to those on shore in the heavy clouds of smoke that hung over the water. When these had cleared away, a scene was revealed that contrasted sadly with that disclosed by the lifting of the morning mist. Crippled and dismantled, the brave ships, whose sails had swelled so proudly in the morning breeze, now made their way towards Put-in-Bay.

The Indians, marvelling at the roar of the guns, watched intently the heavy smoke of battle drifting over the lake. When the thunder had ceased and the sky was clear they eagerly inquired as to the result of the fight; and Tecumseh demanded the reason for the vessels sailing in the direction of the American shore. Procter, fearing that the news of defeat might cause the chief and his warriors to desert, craftily explained that his vessels had beaten the Americans, but had gone to refit and would return in a few days. But Tecumseh's keen eyes soon detected signs on land which aroused his suspicions, for hasty preparations were being made for retreat. He was indignant at what seemed to him the cowardice of Procter, and demanded to be heard in the name of all his warriors. At a council of war held on September 18 the great orator delivered his last powerful speech. With flashing eye and rapid gesture he thundered forth to Procter:

Father, listen to your children! You have them now all before you.

The war before this, our British father gave the hatchet to his red children, when our old chiefs were alive. They are now dead. In that war our father was thrown on his back by the Americans; and our father took them by the hand without our knowledge; and we are afraid our father will do so again at this time.

Summer before last, when I came forward with my red brethren and was ready to take up the hatchet in favour of our British father, we were then told not to be in a hurry—that he had not yet determined to fight the Americans.