The Battle of Chilcheollyang was part of the broader conflict known as the Imjin War, which lasted from 1592 to 1598. This conflict saw Japan seeking to invade and conquer Korea, motivated by aspirations of expansion into China. The battle occurred amid a series of naval confrontations aimed at controlling sea routes essential for movement of troops and supplies. Commander Won Gyun, leading the Joseon fleet, was tasked with intercepting and repelling the Japanese forces threatening the coastal territories of Korea.

On the day of the battle, the Joseon fleet, consisting of 200 ships, engaged the larger Japanese navy, which boasted about 500 ships. In a context where naval operations were critical, the Korean forces aimed to defend their waters. However, Won Gyun's fleet faced several challenges, including inferior numbers and less experience at sea compared to the seasoned Japanese sailors. Despite showing bravery and tactical attempts to repel the attackers, the engagement turned disastrous for the Korean navy as they struggled to match the firepower and maneuverability of the Japanese fleet.

The aftermath of the battle significantly influenced the naval landscape of the conflict, marking a pivotal moment that demonstrated Japanese naval supremacy. This defeat led to a further deterioration of Joseon naval capabilities, reinforcing the Japanese hold over the seas and contributing to their ongoing offensive operations in Korea. The battle henceforth became a symbol of the struggles faced by the Joseon dynasty during the Imjin War, emphasizing the urgent need for reforms and revitalization of naval strategies in Korea.