In November 1781, the Admiralty had received intelligence that a large convoy was preparing to sail from Brest under Admiral de Guichen. It was a convoy of transports carrying naval supplies for the West Indies and the French fleet in the East Indies. Edgar was part of Admiral Richard Kempenfelt's squadron of 18 ships, commanded from , which was ordered to intercept the convoy. Kempenfelt did so in the afternoon of 12 December in the Bay of Biscay, approximately south-west of Ushant. With the French naval escort to leeward of the convoy, Kempenfelt attacked immediately, capturing 15 of the transports before nightfall. The rest of the convoy scattered, most returning to [Brest; only five transports reached the West Indies. During the engagement, known as the Battle of Ushant, Edgar fought a running battle with the 84-gun Triomphant. Elliot was later praised by Kempenfelt for his actions during the battle. Elliot was moved into in June 1782, and there were plans to send him to the West Indies in command of a squadron of five ships of the line and a frigate, but the end of the war prevented this. Later years Again left unemployed by the peace, Elliot remained without a command until 1786, when he was appointed Governor and commander-in-chief of Newfoundland. Once again he appointed Captain Erasmus Gower as his flag captain. He fulfilled the post for its usual term, sailing out in June each year and returning in October, with his principal duties being the regulation of the fisheries. He was succeeded by a new commander, Vice-Admiral Mark Milbanke in 1789, having been promoted to rear-admiral of the red on 24 September 1787. He was further advanced to vice-admiral of the blue on 21 February 1790, and as tensions rose with the Spanish Armament that year, Elliot hoisted his flag aboard , but with the easing of the crisis soon struck it. Increasingly infirm, he was promoted to vice-admiral of the red on 12 April 1794, after the outbreak of the French Revolutionary Wars, but was unable to take up any posts. He was promoted to admiral of the blue on 16 April 1795, and then to admiral of the white. He settled at his estate at Mount Teviot, Roxburghshire during his last years and died there on 20 September 1808. He never married. His nephews included Thomas Pasley, William Cathcart, 1st Earl Cathcart and Admiral Robert