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Dundas was admitted to the Scottish Bar in 1763, was appointed Solicitor-General for Scotland in 1766 and Lord Advocate in 1775. He represented Edinburghshire, 1774 to 1782, Newtown, Isle of Wight, 1782, Edinburghshire, 1783 to 1790 and Edinburgh, 1790 to 1802. He first held office in 1782 when he was appointed Treasurer of the Navy for a short time under Shelburne and resumed office under Pitt in December, 1783, holding it continuously until June 1800. He was also Home Secretary, 1791 to 1794, and Secretary of War, 1794 to 1801. In 1804 he was made First Lord of the Admiralty. When the Commission of Naval Enquiry published its tenth report dealing with the office of Treasurer of the Navy, Dundas resigned from office. He was impeached in 1806 and, although acquitted, it was clear that he was guilty of negligent supervision during his term of office. He held no further appointment.