Parrott returned to Surabaya 25 January, and sailed five days later as part of the escort for two Dutch ships as far as Lombok Strait. She then swept through the South China Sea with the combined ABDA force, fighting off three Japanese aerial attacks on 15 February, as the Allies attempted to intercept and prevent a landing on the east coast of Sumatra. She came into Surabaya for fuel 19 February, firing upon enemy planes whilst there, before departing with other destroyers for a night attack on Japanese forces off Bali. Contact was made with two Japanese destroyers and a transport just past midnight on 19/20 February, and in the ensuing fight, was sunk and heavily damaged. Parrott struck ground in the shoals off Bali but was able to churn herself free and retire with the rest of the force to Surabaya.
