During the 1923 Corfu incident with Greece, the Italian Navy, including "Caio Duilio", was deployed to occupy the island of Corfu following the murder of Enrico Tellini and four others. Later that year, she escorted the battleship on a state visit to Spain. A magazine explosion on 8 April 1925 wrecked the No. 3 turret's barbette hoist. The ship went into reserve while repairs were effected in La Spezia, which lasted until April 1928. She underwent refitting at Taranto from 18 March to 15 June 1930. She again went into reserve on 11 August 1932 until 11 August 1933, when she was made the flagship of the Commanding Officer, Reserve Fleet. Starting on 19 March 1937, she was taken to Genoa where an extensive reconstruction began at the Cantieri del Tirreno shipyard. The work was completed on 15 July 1940, at which point she was recommissioned into the 5th Division of the 1st Squadron, based in Taranto.