In April 1797 Sir John Jervis sent the Terpsichore together with the Dido (28 guns) to reconnoitre off Tenerife, where they found the Cadiz-bound Philippine frigates Principe Fernando and El Principe d'Asturia in the Bay of Santa Cruz.
In July 1797, Terpsichore became part of the squadron under Rear-Admiral Nelson that sought to invade Tenerife and capture Santa Cruz, which was being used as a port of refuge by richly laden ships from the West Indies and beyond bound for Spain.