On the 12th General Vichery received orders to perform a reconnaissance towards Gudow. The reconnaissance should scout the enemy positions there to see if the enemy were still present or if he had left the position. The general assembled a force of 4 French infantry companies and Engelsted's Jydske Regiment Light Dragoons. The force marched from Mölln through Drüsen and Gudow Mill. At Gudow Mill Vichery ordered the infantry to deploy while the dragoons rode, formed in column, down the road. Dragoons were sent ahead and out on both flanks of the column to act as scouts. A patrol of Cossacks were routed by the scouts near Wasserung.
Between Segrahm and the farm of Rosengarten the dragoons encountered a force of 80 Cossacks and some hussars from 1st Russian-Prussian regiment von der Holtz. The enemy turned and fled, fleeing along a road leading through a dense forest and on to Schadeland. Vichery sent Colonel Engelsted in pursuit with the 1st and 2nd squadron of the dragoons. After a fierce pursuit where the dragoons took several prisoners, the 2 squadrons were suddenly stopped at Schadeland, which turned out to occupied by the enemy battalion Lüneburg. 2 dragoons were shot, one of them were mortally wounded.
The 2nd Russian-Prussian hussar (the black hussars) regiment von Dohna were stationed at Gallin and had observed how the Cossacks had been routed. The regiment instantly moved north towards Segram and thereby threatened to surround Colonel Engelsted's 2 squadrons. Colonel Engelsted was quickly ordered back to with the 2 squadrons while the remaining 2 squadrons, commanded by Guldberg, would try to stall the black hussars, before they could engage Engelsteds force. A Danish squadron rode north of Rosengarten where it encountered the black hussars vanguard, which it instantly charged and threw back. This caused the enemy hussar regiment to deploy for battle south east of the Lehsten-Valluhn road. Guldberg deployed his 2 squadrons behind Rosenarten, in such a way that a huge gap between the squadrons were hidden from the enemy by the farm. Therefore the commander of the black hussars thought the he was facing the entire dragoon regiment and not just 2 squadrons. He hesitated with attacking, and before he could take a decision, Colonel Engelsted had returned with the remaining 2 squadrons.
Guldberg ordered his 2 squadrons behind Rosengarten to do an about-face and retreat. This move caused the black hussars to charge forward yelling and cheering, thinking that the Danes were fleeing. The hussars formation quickly became disordered. Guldberg had achieved what he had been planning, the hussars were attacking in a disorganised fashion. He then gave the order to do another about face, and counter charged the hussars with his 2 squadrons (still riding in perfect line formation). Colonel Engelsted, arraiving back with his 2 squadrons, saw this excellent move and instantly formed for an attack in support of the 3rd and 4th squadrons led so brilliantly by Guldberg. But as the horses in Engelsted's 2 squadrons were fatigued from the pursuit, he couldn't wait for a line to form, but attacked in march column into the enemy left flank. The black hussars tried in vain to stop the charging dragoons with a salvo from their carbines, which had little to no effect on the oncoming horsemen. Charged in front by a formed body of cavalry and attacked on the left flank the hussars quickly broke and started fleeing. The regiment was pursued by the 3rd and 4th squadrons of dragoons. The hussar regiment dissolved and the retreat turned into a complete rout.
60 hussars had been killed or wounded while another 47 were forced to surrender. The Danish dragoons lost a mere 2 dead and 3 wounded troopers. This cavalry action has later been described by both sides as one of the best led small cavalry battles in the Napoleonic war. General Vichery (who admired the Jydske Regiment Light Dragoons very much) expressed his satisfaction with the Danish cavalry to both Davout and the Prince of Hessen. Later both Engelsted and Guldberg received medals along with the lieutenants Wiggers and Lewon from the dragoons.