The PS Lady Elgin was a sidewheel steamship that operated on Lake Michigan, primarily ferrying passengers and goods between Chicago and Milwaukee. On the night of the tragedy, the ship was returning to Chicago carrying a full load of passengers, many of whom were returning after attending a performance at a local theater in Milwaukee. Bad weather was forecast, and as the ship set sail, storms brewed over the lake, creating treacherous conditions. Despite experienced navigation, the crew struggled to manage the vessel against the inclining winds and choppy waves.

Around midnight, the ship struck a sandbar near the shore of Highland Park, which exacerbated the crisis. The vessel began to take on water and eventually capsized, leading to chaos among the passengers. Many individuals were thrown into the cold waters of Lake Michigan, and lifeboats were either unmanageable or not sufficiently available to assist the large number of passengers aboard. The result was catastrophic; estimates suggested that over 300 people perished, making it one of the deadliest disasters on the Great Lakes at that time.

In the aftermath of the sinking, the tragedy prompted significant changes in maritime safety regulations, including improved lifeboat protocols and safety drills for passengers and crew. The Lady Elgin disaster remains a solemn reminder of the risks associated with maritime travel, particularly in the unpredictable conditions of the Great Lakes.