In early 1995, the Commanding Officer of USS Pensacola was relieved because the preceding November, the ship had run aground off the East Coast. In 1995, while cruising in the Mediterranean, the ship suffered a major fuel leak, causing the ship to go to General Quarters. The fuel leak was repaired, and no one was injured. In 1996, USS Pensacola ran aground once again while en route to Newport, Rhode Island.During the 1996 deployment, assisted in the non-combatant evacuation of Albania. During 1999 deployment stood guard during the events that lead to the invasion of Kosovo.
Pensacola was finally decommissioned in 1999, transferred to the Republic of China Navy(ROCN) in Taiwan and redesignated ROCS Hsu Hai (LSD-193).