Morgan’s third Kentucky raid had not gone well from the beginning. The Battle at Tebbs Bend on July 4 cost him 35 men killed and about 40 wounded. From Tebbs Bend, Morgan pushed north, arriving in Lebanon about 7 o’clock on the morning of July 5, 1863. Lt. Col. Charles S. Hanson knew Morgan was coming and made what preparations he could. Knowing Morgan would approach from the south, Hanson deployed most of his 350 men behind a barricade of fences, overturned wagons, and other obstructions. Hanson knew that this skirmish line could only slow the Confederate advance on the city. He planned to make his stand at the L&N Railroad depot and other brick buildings once his skirmish line was pushed back. Upon reaching Lebanon, Morgan demanded Hanson’s surrender. Hanson refused, and Morgan attacked with artillery and dismounted cavalry. Morgan’s nearly 10 to 1 advantage quickly overwhelmed the Union soldiers, pushing them into town where most sought refuge in the L&N Depot. The brick depot, a block off of Main Street, provided a strong defensive position. Its location was such that Morgan could not use his artillery effectively against it. When Hanson refused a second demand for surrender, Morgan ordered nearby buildings set on fire. Finally, after nearly seven hours of fighting, with the roof of the depot and much of the town on fire, Hanson surrendered. The battle was costly for Morgan. Hanson’s small garrison held him up for seven hours, inflicting some 50 casualties, including his brother, Lieut. Thomas Morgan, who was killed. The death of Tom Morgan enraged Morgan and his men. The Confederate soldiers looted stores and burned about 20 buildings. The Union prisoners were then marched some 10 miles at the double-quick to Springfield where they were paroled. Several Union prisoners died on the forced march. Union losses were small, with Hanson reporting four killed and 16 wounded. Lebanon was the second major engagement Morgan fought in July. It cost him his brother, numerous casualties, and a day he could ill afford to lose.