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Mullaghmore Harbour is a popular location for holiday makers. Lord Mountbatten departed this harbour in his boat, the Shadow V, on the morning of 27th August, 1979. Shortly afterwards, a huge explosion was heard in the town. A bomb, thought to have been triggered remotely from the headlands near here, blew up the boat and killed Mountbatten and others in his party.

On the same day, the British Army suffered its biggest number of casualties in a single incident when 18 soldiers were killed in an explosion in County Down. The IRA claimed responsibility for both incidents.