Following the battle, the Royal Navy was never again seriously challenged by the French fleet in a large-scale engagement. Napoleon had already abandoned his plans of invasion before the battle but they were never revived for fear of the Royal Navy.
Napoleon had tight control over the Paris media and kept the defeat a closely guarded secret. In a propaganda move, the battle was declared a "spectacular victory" by the French and Spanish. Generations of French schoolchildren were taught that Trafalgar was an "inconclusive battle in which the British Admiral was killed".
Less than two months later, the War of the Third Coalition ended with a decisive French victory over Russia and Austria, Britain's allies, at the Battle of Austerlitz. Prussia decided not to join the Coalition and, for a while, France was at peace again. However, it could no longer defeat Britain at sea, so Napoleon went on to impose a continental blockade in an attempt to deny Britain trade with the continent.