The Battle of Cane Creek, September 12, 1780, a loyalist victory, was a small action between North Carolina militiamen led by Colonel Charles McDowell and a larger Tory force of Partisan regulars and militia led by British officer Major Patrick Ferguson. However, Crane Creek was far more important than a brief clash of arms. After Major Ferguson received word that McDowell had retreated further west over the Appalachians into what is today eastern Tennessee, he mistakenly thought his enemy was defeated. As such this reassured a proclamation he had sent two days prior to Cane Creek to settlers over the mountain. Instead of fealty to the king, Ferguson’s brash ultimatum unleashed a tidal wave of inflamed wilderness pioneers. They grabbed their rifles and crossed over the mountain into the Carolinas, with but one goal, Ferguson’s death. Though relatively small, the battle of Cane Creek would have far-reaching consequences. On September 12, 1780 Loyalist (Tory) forces under British Major Patrick Ferguson and Patriot volunteers under Colonel Charles McDowell clashed at the head of Cane Creek.

Both sides sustained losses, but the Tories prevailed in the end, and the Patriots retreated over the mountains. Ferguson issued his infamous warning to the back-country settlements in part because of this small battle, but the Patriot settlers weren’t going to stand being threatened. Less than 3 weeks after this engagement, roughly 1,400 militiamen encamped near the site of the battle, hot on the trail of Ferguson. When the Loyalists crossed the ford, Col. McDowell sprung his ambush. Capt. Dunlap was severely wounded in the thigh. The American Volunteers under Major Ferguson counter-attacked and took seventeen prisoners along with twelve Patriot horses. Major Joseph McDowell, the colonel's brother, hollered out to the men to never yield, and to stand with him and die. The Loyalists fell back from the spirited defense and retreated from the ford. Col. McDowell realized that his force was out-numbered and retreated across the mountains to Watauga. Major Ferguson's advance party followed for a short while, then withdrew back to Gilbert Town.