Little is known of Captain James Dalyell's life before he obtained the rank of lieutenancy in 1756. In 1760, through his extensive network of connections, he was transferred to the 1st Regiment, a highly prestigious military unit. He later became an aide-de-camp to General Jeffrey Amherst; the two would share a strong contempt for native people.

Captain Dalyell was keen to take part in the British effort to relieve Fort Detroit. The fort was under the command of Major Henry Gladwin. On the evening of July 30, 1763, Dalyell urged Gladwin to support a surprise attack on Pontiac. Resting on his "tight" relationship with General Amherst, Dalyell convinced Gladwin that a surprise attack was a good idea. Some say that Gladwin's willingness to let Dalyell go ahead with the attack had to do with a personal dispute between the two men. Both of them were in pursuit of the same woman, Madeleine de Tonnancour. Gladwin may have figured that sending Dalyell on a potentially deadly night raid could be a way of getting rid of him. So Gladwin consented and Dalyell prepared to stage a fierce ambush. However, what they did not know was that Pontiac had been informed and was well prepared for the ensuing confrontation.

The British troops approached, and Pontiac dispatched nearly 400 braves to fight them. He ordered his men to fire when the British reached the middle of a narrow bridge over Parent's Creek. Daylell's secret plan was foiled. In a desperate effort for victory, he led a charge against Pontiac's men. This proved to be a hopeless effort; the native warriors shot him dead.

By the end of the engagement, 20 men were killed and more than 30 were wounded. Captain James Dalyell's body was taken back to the natives' camp. Here, it is reported, the warriors cut out Dalyell's heart and wiped it on the faces of British prisoners.