In 2006 at age two, Scat Daddy won his first race in June 2006 at Belmont Park, then followed up with a win in the Sanford Stakes at Saratoga. He then finished second to Circular Quay in the Hopeful Stakes, before returning to Belmont to win the Champagne Stakes, defeating Nobiz Like Showbiz. In his final race of 2006, he was fourth in the 2006 Breeders' Cup Juvenile, well back of winner Street Sense. He was rated at 123 pounds on the Experimental Free Handicap, 4 pounds below champion Street Sense and second overall.