She was again placed out of service in 1897 in Çanakkale. That year, with the outbreak of the Greco-Turkish War in February 1897, "Osmaniye" was mobilized into the 1st Squadron. The Ottomans inspected the fleet and found that almost all of the vessels, including "Osmaniye", to be completely unfit for combat against the Greek Navy, which possessed the three modern s. Despite the fact that "Osmaniye" and her sisters had been refit just three years previously, the inspectors discovered that many of the pistons on their Krupp guns were bent, rendering the guns useless. Through April and May, the Ottoman fleet made several sorties into the Aegean Sea in an attempt to raise morale among the ships' crews, though the Ottomans had no intention of attacking Greek forces. On 15 May, "Osmaniye" took part in a training exercise that only served to highlight the poor training of the crews. With no possibility left to use the fleet in an active way, the Navy withdrew "Osmaniye" from service and removed her guns. The condition of the Ottoman fleet could not be concealed from foreign observers, particularly the British Admiral Henry Wood and the German Admiral Eugen Kalau vom Hofe, who led the inspection. The fleet proved to be an embarrassment for the government and finally forced Sultan Abdul Hamid II to authorize a modernization program, which recommended that the ironclads be modernized in foreign shipyards. German firms, including Krupp, Schichau-Werke, and AG Vulcan, were to rebuild the ships, but after having surveyed the ships, withdrew from the project in December 1897 owing to the impracticality of modernizing the ships and the inability of the Ottoman government to pay for the work due to its weak finances. Following a lengthy process of negotiations, Krupp received the contract to rebuild "Osmaniye" on 11 August 1900, along with several other warships. By December 1902, however, Krupp withdrew from the deal, and "Osmaniye" was ultimately not reconstructed. In 1908, "Osmaniye" was towed back to Constantinople, where on 31 July 1909 she was decommissioned. She remained in the Navy's inventory until 1923, however, when she was sold to ship breakers.