Abstract: The Wanhsien Incident was an event where the British gunboat bombed Wanhsien County on September 5, 1926. The people of Wanhsien suffered the tragic loss of life and property due to the atrocities of the British Army, but they did not receive any apology or compensation. The British, on the other hand, believed that the purpose of its action was legitimate, which was to save the innocent vessels detained, punish the tyrannical Chinese army and protect the interests of the British people. The mentality and behavior of the British Navy before, during and after the Wanhsien Incident were all the results of its "Gunboat Policy". However, the surging movement of boycott against Britain from all over China after the incident also made Britain pay the price for its "Gunboat Diplomacy" and prompted a shift in Britain's policy towards China.

Key words: Wanhsien Incident, "Gunboat Policy", Britain, Yang Sen