Commander J. Glendinning RNR reported to the Naval Officer in charge at Ramsgate on 5 June 1940, detailing his command of the tug Java from 28 May 1940 at 1430 hours. He proceeded to Dunkirk accompanied by four drifters and five motor launches, including the Nayland. The flotilla arrived off Bray Dunes on 29 May at 0100 hours, where Commander Glendinning anchored in three fathoms of water and dispatched the motor launches to the beach to search for troops, who appeared to be concealed in the sands.

All vessels under his command engaged in transferring soldiers from the beaches to larger ships offshore. At 1000 hours, he ordered the motor launches to transfer their troops to HMS Calcutta. By 1900 hours, no large ships remained offshore, and the smaller boats returned directly to Ramsgate with their passengers, arriving at 0930 on 30 May. Commander Glendinning noted that all personnel were in good spirits despite having had no meals from the afternoon of 28 May until 1100 on 30 May.

Records indicate that the Nayland disembarked 28 troops at Ramsgate at dawn on 2 June, with additional disembarkations at 0740 and 1120 hours, suggesting she ferried troops from offshore vessels to Ramsgate harbour. The following morning, she disembarked a further 55 troops directly from Dunkirk at Ramsgate, bringing her total troop evacuation count during Operation Dynamo to 83.

The Nayland was originally constructed by Perkins in Whitstable as a pilot boat. In July 1940, she was reassigned to auxiliary patrol duties at Ramsgate and later served as a dispatch boat at Sheerness. She continued to serve the Royal Navy until 17 July 1945.

Following the war, the vessel was renamed Peggotty. In 1977, she was purchased by Isabel Robinson for £3,000 despite her poor condition. Prior to this, Peggotty had been raised three times from the mud at Richmond-upon-Thames, where she had sunk while serving as a floating home for a group of hippies.

In 1987, Peggotty was acquired by Joe and Penny Eves. For several years, she was used as a houseboat moored at Swan Island Harbour under the ownership of Ruth Rossington. After sustaining damage from an impact that holed her hull, she was sold in 2016 for one pound to joint owners William and Pauline Moore and Paul and Hilary Leveck.

The new owners undertook a challenging operation to float Peggotty up the Thames from Teddington to Chertsey, employing temporary repairs including bin bags, plywood, and sealant, and using car batteries and bilge pumps to keep her afloat. She arrived safely at Dennett Boat Builders yard in Chertsey, where a comprehensive restoration was completed. This included replacement of the interior, transom, decks, and all 37 feet of underwater planking. Peggotty was relaunched in spring 2017.

She was recently observed at St Katharine's Dock, London, on Marathon Day 2018, appearing in excellent condition and prepared for continued service on the water.