Following his return from India, Dufferin resumed his ambassadorial career, serving as ambassador to Italy from 1888 to 1891.
On 17 November 1888, he was advanced in the peerage as Marquess of Dufferin and Ava, in the County of Down and the Province of Burma, and Earl of Ava, in the Province of Burma.
As ambassador to France from 1891 to 1896, he presided over some difficult times in Anglo-French relations, and was accused by some sections of the French press of trying to undermine Franco-Russian relations.
During this time he helped establish the Anglo-French Guild which has since evolved into the University of London Institute in Paris (ULIP).
After returning from France, Dufferin became President of the Royal Geographical Society, and Rector of the University of Edinburgh and the University of St Andrews.
He received the honorary Doctor of Laws (LL.D) from the University of Glasgow in June 1901.

Throughout his life, Dufferin was known for living beyond his means, and had heavily mortgaged his estates to fund his lifestyle and improvements to the estates.
In 1875, with his debts approaching £300,000, he was facing insolvency and was forced to sell substantial amounts of land to pay off his creditors.
After he retired from the diplomatic service in 1896, he received several offers from financial speculators hoping to use his high reputation to attract investors to their companies.
In 1897, worried about the family financial situation, he was persuaded to become chairman of the London and Globe Finance Corporation, a mining promotion and holding company controlled by Whitaker Wright, but in November 1900 shares in the company crashed and led to its insolvency.
It subsequently transpired that Wright was a consummate fraudster.
Dufferin lost substantial money on his holdings in the company, but was not guilty of any deception and his moral standing remained unaffected.

Soon after this misfortune, Dufferin's eldest son, Lord Ava, was killed in the Boer War.
Dufferin returned to his country house at Clandeboye, near Bangor, in poor health, and died on 12 February 1902.
Lady Dufferin died on 25 October 1936.
Following his return from India, Dufferin resumed his ambassadorial career, serving as ambassador to Italy from 1888 to 1891. On 17 November 1888, he was advanced in the peerage as Marquess of Dufferin and Ava, in the County of Down and the Province of Burma, and Earl of Ava, in the Province of Burma. As ambassador to France from 1891 to 1896, he presided over some difficult times in Anglo-French relations, and was accused by some sections of the French press of trying to undermine Franco-Russian relations. During this time he helped establish the Anglo-French Guild which has since evolved into the University of London Institute in Paris (ULIP). After returning from France, Dufferin became President of the Royal Geographical Society, and Rector of the University of Edinburgh and the University of St Andrews. He received the honorary Doctor of Laws (LL.D) from the University of Glasgow in June 1901.
Throughout his life, Dufferin was known for living beyond his means, and had heavily mortgaged his estates to fund his lifestyle and improvements to the estates. In 1875, with his debts approaching £300,000, he was facing insolvency and was forced to sell substantial amounts of land to pay off his creditors. After he retired from the diplomatic service in 1896, he received several offers from financial speculators hoping to use his high reputation to attract investors to their companies. In 1897, worried about the family financial situation, he was persuaded to become chairman of the London and Globe Finance Corporation, a mining promotion and holding company controlled by Whitaker Wright, but in November 1900 shares in the company crashed and led to its insolvency. It subsequently transpired that Wright was a consummate fraudster. Dufferin lost substantial money on his holdings in the company, but was not guilty of any deception and his moral standing remained unaffected.
Soon after this misfortune, Dufferin's eldest son, Lord Ava, was killed in the Boer War. Dufferin returned to his country house at Clandeboye, near Bangor, in poor health, and died on 12 February 1902. Lady Dufferin died on 25 October 1936.
Frederick Hamilton-Temple-Blackwood, 1st Marquess of Dufferin and Ava