During the Second Battle of Narvik on 13th April 1940, PUNJABI was badly damaged by six shells but was back in action an hour later. Bigger action was to follow. On 21/22 May 1941, it was believed that the German pocket battleship BISMARCK was ready to break out into the Atlantic. Confirmation came through on 22nd May and the Home Fleet sailed at 2245. PUNJABI as part of that Fleet, was not to share in the final cornering of BISMARCK. Two days of high speed search soon depleted the destroyers fuel oil and by the 24/25th, all destroyers had to return to Hvalfiord Iceland to refuel.

Prior to the invasion of Russia by Germany, Force 'K' consisting of PUNJABI, HMS AURORA, HMS NIGERIA and HMS TARTAR left Scapa Flow for Spitsbergen with the intention of investigating that island's use as a naval base. It was intended that the ships stationed here could strike against German convoy traffic off Norway. Rear-Admiral Vian in NIGERIA layer reported that a military occupation of Spitsbergen could be feasible but the winter ice in the fiords would prohibit the island's use as an all-year round naval base. After that mission, all of PUNJABI'S operations focused on Russian convoys.

In January 1942, PUNJABI was retrofitted at Palmer's Jarrow Yard and immediately returned to her Home Fleet duties. On the 5th March 1942, she joined HMS ASHANTI and HMS BEDOUIN in an abortive hunt for the German battleship TIRPITZ. After a second attempt, PUNJABI was forced to return to base with disabled steering gear. While on duty with convoy PQ15 on 1st May 1942, visibility suddenly closed in and the 35,000 ton battleship HMS King George V crashed into PUNJABI'S port side just abaft the engine room and went through her "like a butter knife at 25 knots". PUNJABI'S stern sank almost immediately. Her ready-use depth charges detonated, bucking the battleship's sides below the waterline and causing severe injuries to the survivors. Fortunately, PUNJABI's forepart sunk quite slowly thus allowing 169 people to be saved by HMS MARTIN and HMS MARNE.