Sascha Kindred was under the old world record but finished second as he made up for his earlier disappointment with silver in the SM6 200 metres individual medley.
The 34-year-old had not been dislodged from the top of the podium since first claiming gold in Sydney 12 years ago and on Monday morning went some way to making up for his fourth in the 100m breaststroke as he qualified fastest for the medley final.
He told Channel 4: "That was what I wanted: a medal in this event. It's not the colour I wanted, but [it's] a new European record, a PB, so I've done my fastest time on the biggest stage so I can't ask for more than that. It took a world record to beat me."
Kindred was fourth at halfway before his breaststroke leg pulled him up to second, narrowly behind Xu Qing.
It looked as though it would be a stroke-for-stroke duel but the Chinese pulled away to take 3.37 seconds off Kindred's world record in two minutes 38.62 seconds.
The Briton also dipped inside his old mark to claim silver in 2mins 41.50secs.
He added: "I'm going to stand on the podium and be glad of that silver medal."
Susie Rodgers dug in for bronze in the S7 100m freestyle.
The 29-year-old came under attack from Ani Palian to her left in lane six but the Briton was not giving an inch and held off the Ukrainian to touch third in 1:12.61.
It was Rodgers' first medal of the Games on what is her Paralympic debut.