The ship was docked at Port Royal following LordCutler Beckett's arrival, and launched for the open water after Elizabeth Swann escaped from Beckett's custody. Swann stowed away aboard the Trader, disguised as a crewman, intending to reach Tortuga. To this end, she played on the superstitious nature of the ship's crew, using her wedding dress like a puppet to fool the sailors into believing the ship was haunted by a widow's spirit. She was ultimately able to persuade the captain to head for Tortuga. While there, the crew made a tidy profit "off the books."
Later, back on the water, the crew picked up Will Turner, having escaped from the Flying Dutchman. However, Davy Jones had set the Kraken after him, and the legendary leviathan rose, dragging CaptainBellamy to the depths, and attacked the Edinburgh Trader. After smashing the masts and snatching crew members with its numerous tentacles, the Kraken brought its largest tentacles down on the ship, splitting it in two right down to the keel before dragging its remains underwater. Will Turner was the sole survivor, as the other six survivors were killed by Jones' crewmen after being brought aboard the Flying Dutchman.