After crossing the Manahuilla Creek, a few miles farther on, a halt was made to allow the animals to graze where the grass was greened up after the prairie had been burned off. The scouts reported the enemy army was only four or five miles off, but did not seem to be pursuing the Texans. Captain Horton's Company of about 30 horsemen was directed to scout around and give notice of any appearance of the enemy, so the Commanders felt secure. Going on about two miles the teams showing signs of breaking down, it was thought advisable to call another halt. Here on a low ridge with no natural protection, but in sight of the Coleto Creek timber line, the halt was made. But just then it was discovered that the enemy were emerging from the timber. Quickly the six-pounder cannon was unlimbered and three shots fired at them, but it was seen that the shots fell short of the target. It seems that Horton had left four of his men in the rear of the Texans' line of retreat to keep a lookout for the Mexican Army and to warn Fannin. Instead the four dismounted to rest, and fell asleep. The enemy was upon them before they knew it. Hastily mounting their horses they wildly fled in the greatest terror, and passing about a hundred yards on the right of the Texas army, without even stopping to look at their comrades on foot, thirty fled on accompanied by the curses of the men they were supposed to warn.

Col. Fannin, on seeing the Mexican Army coming from the woods, still ordered his men to resume the march. Before anything could be done with the ammunition the Mexican Army closed around the Texans and opened fire upon them. Now the fight began in earnest. Soon it was seen that the enemy were being reinforced by other troops, until there must have been over one thousand fighting against Fannin's three hundred.

Thus were events leading to the Battle of Coleto Creek ending with the capture and subsequent massacre of Fannin's command.

The Texan troops at Victoria on learning of the defeat of Fannin's troops quickly withdrew to join the scattered Texas bands at Gonzales and on the Colorado and Brazos Rivers, where they were eventually joined by most of the escapees.  They were closely followed by the Mexican Army, but not before some of them joined Houston at San Jacinto. In that battle the rallying call of the Texans was: "Remember Goliad, "Remember the Alamo."  After the glorious victory at San Jacinto and the capture of the butcher of Fannin's men, Santa Anna, by the Texans, Filisola was put in command of the defeated Mexican Army and began the famous "Filisola's Retreat" to Mexico, in accordance with the treaty between Houston and Santa Anna. He came by Goliad, but did not dare enter it, as he feared the tempers of the few—very few—remaining men there. He was escorted on the retreat by the Texan army under Gen. Thomas J. Rusk, who established his headquarters at Victoria, while he pushed on to Goliad to see that Filisola did not stop there. This was about June 3rd.