"Ouellet" began her third major overhaul in February 1985. She received extensive upgrades to her gun mount, received CIWS, and SNAP II computers. In 1986 "Ouellet" was again preparing for a Western Pacific deployment. "Ouellet" deployed for her eighth time in April 1987. "Ouellet" deployed with fellow Pearl Harbor ships and to join the battle group known as "Battle Group Delta". The frigate spent time in Subic Bay, Philippines before transiting the Strait of Malacca on the way to Diego Garcia, BIOT. When got hit by an Iraqi Exocet missile in May 1987, the "Constellation" battle group deployed to the North Arabian Sea, while "Ouellet" went south to have port visits at Saint-Denis, Réunion – which was a historic visit of sorts as no American Navy ship made a port call there in over 100 years – then off to Port Victoria, Seychelles. The warship then joined the rest of the battle group in the North Arabian Sea in support of Operation Earnest Will. "Ouellet" was detached from Battle Group Delta and proceeded with with port visits to Phuket, Thailand and Singapore. The frigate then detached from "Cochrane" and proceeded to Subic Bay, RPI where she had a 3-week stay before the battle group caught up and proceeded home with her. She returned to Pearl Harbor on 6 October 1987.