On 12 December 1937, Ladybird, along with Bee became involved in the Panay incident and came under fire from a Japanese artillery unit near Wuhu on the Yangtze River. Ladybird was hit by six shells and Bee dodged one as she came upon the scene. Ladybird was not badly damaged and with Bee picked up survivors from the sunk USS Panay.
Ladybird was allocated to Singapore in 1940 and then, along with five others of the class, stripped down and towed to the Mediterranean Sea. During the journey she sustained damage which meant she was limited to a speed of 7 knots (13 km/h; 8.1 mph) due to a misaligned hull. She was initially used to guard Port Said.
Off Bardia on 31 December 1940
Ladybird's gunners in action during the bombardment of Bardia, 31 December 1940
On 25 February 1941 she landed a Royal Marines unit during Operation Abstention, an ill-fated attempt to seize the Italian island of Kastelorizo, where she was hit by an aerial bomb. Later, acting in support of the Tobruk garrison, she shelled the Gazala airfield and ferried in supplies. During this duty, on 12 May 1941, she was severely damaged by dive bombers and set on fire, settling on an even keel in 10 feet (3.0 m) of water. Still above water, her 3-inch (76 mm) gun was used as an anti-aircraft gun; HMS Gnat replaced Ladybird in supporting Tobruk.