In December 1914, the harbour was the base for a British Squadron lying in wait for the German Far East Squadron led by Adm. Graf von Spee.
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During the Battle of the River Plate in December 1939, the Graf Spee concentrated fire upon the Exeter inflicting some 40 direct hits and causing major damage.
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As such this is the busiest waterway of the Falkland Islands and frequently visited by cruise ships, freighters and navy vessels, although this has lessened since the building of the two airports at RAF Mount Pleasant and Port Stanley Airport.
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The peninsula on which Canopus Hill, Port Stanley Airport and Gypsy Cove lie, together with a narrow spit of land known as Navy Point, effectively divides Port William from Stanley Harbour.
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Due to the construction of a port at Mare Harbour, Stanley Harbour no longer deals with much military transport.
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Stanley Harbour is effectively the enlarged estuary of Moody Brook, which flows into it at the west end.
Most cruise ships pass Yorke Bay and Gypsy Cove on the way to dock in Stanley Harbour.
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Set on a peninsula on which Canopus Hill, Stanley Airport and Gypsy Cove lie, together with a narrow spit of land known as Navy Point, effectively divides Port William from Stanley Harbour.