Lookout took passage from Gibraltar to Plymouth on 19 October 1945 to be paid off and reduced to Reserve status. The ship was laid up in Reserve at Devonport and in October 1947 placed on the Disposal List. Sold to BISCO in January 1948, she was taken in tow to Newport, Monmouthshire for demolition by John Cashmore and arrived at the breaker's yard on 29 February that year.
