Travelling back to Chicago, Native Dancer went off as the 1-10 favorite in a field of eight in the American Derby on August 22. He settled near the back of the pack behind a fast early pace set by Sir Mango. Entering the far turn, Native Dancer moved to the outside and into fourth place. Without any urging, he surged forward rounding the far turn and won by two lengths. He completed the -mile race in 1:48, just one-fifth of a second off the track record. Arcaro believed that the colt could have broken the record if urged. "But he was winning, so I didn't see any point in pressing him," he said. "I let him run his own race." Despite the easy win, Arcaro still believed that Native Dancer had something to prove. He rated Citation as the best horse he had ever ridden.