The last action of the 20th Hussars in Egypt was the Battle of Toski.

In July 1889, a Dervish force advanced into Egypt and made for Aswan. The squadron of the 20th Hussars in Cairo moved upriver to Toski, just north of the Egyptian border with Sudan, joining the British and Egyptian force there. The squadron disembarked and moved to its battle positions within the hour. After a hard battle lasting seven hours, the Dervishes were routed and charged by the squadron and Egyptian cavalry. The commander of the Dervish forces was killed in the rout by the cavalry charge, which brought his camel down.

The squadron returned to England to rejoin the regiment in Aldershot. The Battle Honour Suakin 1885 was awarded for its service in Sudan from 1885 to 1889. At the same time, the 20th Hussars were formally recognised as the successor to the 20th Light Dragoons and were awarded the battle honour ‘Vimiera’.