A force of Union troops under James H. Lane moved from Fort Scott, Kansas to attempt an interception of Price's army, and set an ambush along Dry Wood Creek.

On August 10, Lyon decided to attack the combined forces of Price and McCulloch while they were encamped along Wilsons Creek, despite being outnumbered by the Confederates and Missourians by a factor of over two-to-one.

[2] John C. Fremont arrived to take control of Union forces in the state, and James H. Lane took command of several Kansas regiments stationed at Fort Scott.

[5] Lane sent his forces, estimated to number either 600[3] or 1,200 men, out to intercept Price's army, and set an ambush along Dry Wood Creek in Vernon County, Missouri on September 2.

Lane's skirmishers were driven back from an advanced position, and the main Union force used the covers of the woods to hold off Price for about two hours.

The Missouri State Guard subdued the Union garrison, at one point using hemp bales as cover while attacking uphill.

After forcing the Union garrison to surrender, the Missouri State Guard remained in the Lexington area for two weeks before Price ordered the unit to return south.