On 28 October 1923, "O-5" was operating with other units of the U.S. Atlantic Fleet under the command of Commander Submarine Force, Coco Solo, Canal Zone. At approximately 0630, "O-5", under the command of Lieutenant Harrison Avery, was underway across Limon Bay toward the entrance to the Panama Canal. The steamship SS "Abangarez", owned by the United Fruit Company and captained by Master W.A. Card, was underway toward Dock No. 6 at Cristobal. Through a series of maneuvering errors and miscommunication, the SS "Abangarez" collided with the "O-5" and struck the submarine on the starboard side of the control room, opening a hole some ten feet long and penetrating the number one main ballast tank. The submarine rolled sharply to port – then back to starboard – and sank bow first in 42 feet of water.