During the Battle of the Bismarck Sea on 1–4 March, Shirayuki was flagship for Rear Admiral Masatomi Kimura, leading a troop convoy from Rabaul to Lae. In an Allied air attack on 3 March, a skip-bomb exploded in her aft magazine, severing her stern, and killing 32 crewmen. Shirayuki sank 55 nautical miles (102 km) southeast of Finschhafen at position 07°15′S 148°30′ECoordinates: 07°15′S 148°30′E. The survivors, who included Admiral Kimura and her captain Commander Sugawara were rescued by Shikinami