Ernest was born in Lübeck, Germany on the 3rd of July, 1866 and was living in New York City when he enlisted in the US Navy. It was his actions during the Spanish-American War as a Coxswain that would earn him the Medal of Honor. The citation reads:

On board the U.S.S. Nashville during the operation of cutting the cable leading from Cienfuegos, Cuba, 11 May 1898. Facing the heavy fire of the enemy, Krause displayed extraordinary bravery and coolness throughout this action.

Ernest received his Medal of Honor on the 7th of July, 1899 and from what can be found, stayed in the Navy until he was discharged less than honorably on the 9th of January, 1907 in Portsmouth, New Hampshire. There is not much else known about Ernest Krause, to include not knowing his date of death or place of burial. He remains one of 340 recipients of the Medal of Honor to be considered lost to history.