The modernisation was completed in April 1977. In that same year, "Arethusa", like many Leanders, took part in the Royal Navy's Fleet Review in celebration of HM the Queen's Silver Jubilee. "Arethusa" was positioned between and and was part of the 3rd Frigate Squadron. Between 1978 and 1981 she was commanded by Kenneth Snow. In 1979, "Arethusa" deployed to the Far East and Pacific. In 1980 "Arethusa" underwent a refit that was completed the following year. She then joined Standing Naval Force Atlantic, a NATO multi-national squadron. In 1985, "Arethusa" was fitted with towed array sonar. On 4 April 1989, at Portsmouth, "Arethusa" decommissioned. She was eventually sunk as a target in 1991.