A group from Huskisson led by Member for South Coast John Hatton convinced the Public Transport Commission to donate Lady Denman as a museum piece for display in Huskisson.
It was towed out of Sydney Harbour by HMAS Snipe on 3 January 1980, but was quickly damaged by rough seas and had to turn back.

A second attempt was made on 1 June 1981.
However, after running into storm off Wollongong, the ferry began taking on water after a pump failure.
The Royal Australian Navy were able to provide HMAS Tobruk to shelter the ferry and the tow was successfully completed to Jervis Bay, although at the end of the journey she nearly sank in Currambene Creek at Huskisson, opposite where she had been built.

On 3 April 1983, Lady Denman was hauled ashore to its final resting place very close to where it had been built and restoration work commenced.
With a $1.4 million Federal Government grant, on 3 December 1988 the Lady Denman Maritime Museum (since renamed Jervis Bay Maritime Museum) opened.
A dry dock was built and a channel cut to where the vessel was sitting, a short distance away and well out of the water.
The dock and channel were then flooded, and with pumps operating a patched up LADY DENMAN was floated a pulled by volunteers the short distance across to its new location.
The water was then drained out, and construction of its new housing began around it in 1998.
Restoration and rebuilding work continue to bring her back to her 1960s appearance.
The Museum is divided into three sections, each with its own official openings.
Olympian Dawn Fraser opened the Local History Museum, sailor Kay Cottee opened the Museum of Science & the Sea (Halloran Collection) and elder Marjorie Timbery (dec) opened Timbery’s Aboriginal Workshop.

She was added to the New South Wales State Heritage Register on 9 November 2001.
The condition of the ferry was reported as good as at 2 June 1998 as a result of conservation work, arresting a long period of deterioration.
Its machinery has been removed for separate display and the ferry otherwise remains in its decommissioned state.
A group from Huskisson led by Member for South Coast John Hatton convinced the Public Transport Commission to donate Lady Denman as a museum piece for display in Huskisson. It was towed out of Sydney Harbour by HMAS Snipe on 3 January 1980, but was quickly damaged by rough seas and had to turn back.
A second attempt was made on 1 June 1981. However, after running into storm off Wollongong, the ferry began taking on water after a pump failure. The Royal Australian Navy were able to provide HMAS Tobruk to shelter the ferry and the tow was successfully completed to Jervis Bay, although at the end of the journey she nearly sank in Currambene Creek at Huskisson, opposite where she had been built.
On 3 April 1983, Lady Denman was hauled ashore to its final resting place very close to where it had been built and restoration work commenced. With a $1.4 million Federal Government grant, on 3 December 1988 the Lady Denman Maritime Museum (since renamed Jervis Bay Maritime Museum) opened. A dry dock was built and a channel cut to where the vessel was sitting, a short distance away and well out of the water. The dock and channel were then flooded, and with pumps operating a patched up LADY DENMAN was floated a pulled by volunteers the short distance across to its new location. The water was then drained out, and construction of its new housing began around it in 1998. Restoration and rebuilding work continue to bring her back to her 1960s appearance. The Museum is divided into three sections, each with its own official openings. Olympian Dawn Fraser opened the Local History Museum, sailor Kay Cottee opened the Museum of Science & the Sea (Halloran Collection) and elder Marjorie Timbery (dec) opened Timbery’s Aboriginal Workshop.
She was added to the New South Wales State Heritage Register on 9 November 2001. The condition of the ferry was reported as good as at 2 June 1998 as a result of conservation work, arresting a long period of deterioration. Its machinery has been removed for separate display and the ferry otherwise remains in its decommissioned state.
MV Lady Denman