UFC 3: The American Dream was a mixed martial arts event held by the Ultimate Fighting Championship on September 9, 1994, at Independence Arena in Charlotte, North Carolina. The event was seen live on pay per view in the United States, and was later released on home video. UFC 3 used an eight-man tournament format, with the winner receiving $60,000. The tournament had no weight classes or weight limits. Each match had no time limit or rounds; therefore no judges were used for the night. The referee for the night was 'Big' John McCarthy. The event marked the inception of referee stoppage in fights.

Steve Jennum won the tournament by defeating Harold Howard via submission due to a strikes, despite only fighting in the finals. This was the first UFC tournament that was not won by Royce Gracie (who could not continue due to fatigue). After Jennum won the UFC 3 Tournament as an alternate, the UFC instated alternate qualifiying bouts to balance out fatigue, and lessen the advantage that alternates previously had entering the tournament without fighting quarterfinal bouts.

Results

Main Card

• Quarterfinal Bout: Emmanuel Yarborough vs Keith Hackney
  Despite a more than 400 pound (181 kg) weight disadvantage, Hackney defeated Yarborough by submission due to strikes at 1:59. Yarborough is the largest ever contestant in a UFC at 6'8" 618 lb, according to the introduction by the ring announcer. Although other fighters have been listed at 6'8" or taller, no other fighter has even been listed at 500 lb.
• Quarterfinal Bout: Ken Shamrock vs Christophe Leninger
  Shamrock defeated Leninger via submission due to strikes at 4:49.
• Quarterfinal Bout: Roland Payne vs Harold Howard
  Howard defeated Payne by KO at 0:46.
• Quarterfinal Bout: Royce Gracie vs Kimo Leopoldo
  Gracie defeated Kimo by submission via an armbar at 4:40. Kimo's elaborate entrance included carrying a full size cross to the ring. Due to fatigue and dehydration sustained in this fight, Gracie was unable to continue in the tournament. This was the longest anyone had yet gone with Royce Gracie.
• Semifinal Bout: Ken Shamrock vs Felix Mitchell
  Shamrock defeated Mitchell by submission via a rear naked choke at 4:36. Mitchell was a replacement for Hackney, who could not continue due to injury. Due to injury Shamrock sustained in this fight, he was unable to continue in the tournament. However, in Shamrock's book Beyond the Lion's Den, Shamrock states that he refused to continue in the tournament since Royce Gracie had already exited the tournament due to injuries sustained in the previous fight. Since Shamrock's only purpose to entering the tournament was to fight Gracie, he decided to quit.
• Semifinal Bout: Harold Howard vs Royce Gracie
  Howard won by forfeit due to Gracie bowing out of the tournament. As Shamrock was injured in his Semifinal bout, and the second alternate was taking his place in the finals, there were no alternates left to fight Howard, who automatically advanced to the finals.
• Finals Bout: Steve Jennum vs Harold Howard
  Jennum defeated Howard by submission due to strikes at 1:31. Jennum was a replacement for Shamrock, who was injured during his semifinal bout.