SMS Kaiser Max (1862)

Map showing the disposition of the fleets on 20 July

On 16 July, Persano took the Italian fleet, with twelve ironclads, out of Ancona, bound for the island of Lissa, where they arrived on the 18th. With them, they brought troop transports carrying 3,000 soldiers.[3] Persano then spent the next two days bombarding the Austrian defenses of the island and unsuccessfully attempting to force a landing.[7] Tegetthoff received a series of telegrams between the 17 and 19 July notifying him of the Italian attack, which he initially believed to be a feint to draw the Austrian fleet away from its main base at Pola and Venice. By the morning of the 19th, however, he was convinced that Lissa was in fact the Italian objective, and so he requested permission to attack.[8] As Tegetthoff's fleet arrived off Lissa on the morning of 20 July, Persano's fleet was arrayed for another landing attempt. The latter's ships were divided into three groups, with only the first two able to concentrate in time to meet the Austrians.[9] Tegetthoff had arranged his ironclad ships into a wedge-shaped formation, with Kaiser Max on his left flank; the wooden warships of the second and third divisions followed behind in the same formation.[10]

While he was forming up his ships, Persano transferred from his flagship, Re d'Italia to the turret ship Affondatore. This created a gap in the Italian line, and Tegetthoff seized the opportunity to divide the Italian fleet and create a melee. He made a pass through the gap, but failed to ram any of the Italian ships, forcing him to turn around and make another attempt.[11] After the second pass, Kaiser Max engaged Re d'Italia, with the latter damaging Kaiser Max's rigging and funnel. After the Italian ship had been rammed and sunk by Erzherzog Ferdinand Max, Kaiser Max attempted to ram another Italian vessel without success. She then engaged the small coastal defense ship Palestro with fifteen broadsides. The Austrian ironclad Don Juan d'Austria then became surrounded by Italian ships, prompting Kaiser Max to come to her rescue.[12]

Around this time, Persano broke off the engagement, and though his ships still outnumbered the Austrians, he refused to counter-attack with his badly demoralized forces. In addition, the fleet was low on coal and ammunition. The Italian fleet began to withdraw, followed by the Austrians; Tegetthoff, having gotten the better of the action, kept his distance so as not to risk his success. As night began to fall, the opposing fleets disengaged completely, heading for Ancona and Pola, respectively.[13] Kaiser Max had emerged from the battle essentially undamaged, the Italian shells having been unable to penetrate her armor.[14]

After returning to Pola, Tegetthoff kept his fleet in the northern Adriatic, where it patrolled against a possible Italian attack. The Italian ships never came, and on 12 August, the two countries signed the Armistice of Cormons; this ended the fighting and led to the Treaty of Vienna. Though Austria had defeated Italy at Lissa and on land at the Battle of Custoza, Italy's ally Prussia had decisively defeated the Austrian army at the Battle of Königgrätz. As a result, Austria, which became Austria-Hungary in the Ausgleich of 1867, was forced to cede the city of Venice to Italy.[15] In the immediate aftermath of the war, the bulk of the Austrian fleet was decommissioned and disarmed.[16]

The fleet embarked on a modest modernization program after the war, primarily focused on re-arming the ironclads with new rifled guns.[17] Kaiser Max was rebuilt in 1867, particularly to correct her poor seakeeping. Her open bow was plated over and she was rearmed with twelve 7-inch (178 mm) muzzleloaders manufactured by Armstrong and two 3-inch (76 mm) 4-pounder guns. By 1873, the ship was obsolescent and had a thoroughly rotted hull, so the Austro-Hungarian Navy decided to replace the ship. Parliamentary objection to granting funds for new ships forced the navy to resort to subterfuge to replace the ship. Reconstruction projects were routinely approved by the parliament, so the navy officially "rebuilt" Kaiser Max and her sister ships. In reality, Kaiser Max was completely broken up at the STT shipyard starting in December 1873, and only some parts of the engines, her armor plate, and other miscellaneous parts were salvaged for use in the new Kaiser Max, so-named to conceal the fact that she was a new vessel.[18][19]