Between November 1940 and early 1941, "Draug" was rearmed, rebuilt and modernized at the shipyard in Grimsby. Amongst the changes made, her bridge was reconstructed and the fore funnel removed, probably to reduce the weight on the deck. During her time in Grimsby she also escorted coastal convoys and patrolled the Humber estuary. While patrolling the Humber she was on one occasion attacked by a German Heinkel He 111 bomber, first by strafing, then with bombs. The bombs missed their target by some 400 metres, and only one sailor had been slightly wounded during the strafing attacks. "Draug" had returned fire with her anti-aircraft weaponry, although the 3" gun had jammed after the first few rounds and the anti-aircraft machine guns had failed to inflict serious damage on the attacking aircraft.