Desiring to eliminate Early's small force as a threat to his rear, Sheridan turned east instead of proceeding to Sherman.

Custer's men set out towards Early's force at Waynesboro on March 2 with orders to "proceed to Waynesborough, ascertain something definite in regard to the position, movements, and strength of the enemy, and, if possible, to destroy the railroad bridge over the South River at that point."

Heavy rain and sleet, which had been falling for several days, turned the road into a quagmire and greatly impeded the speed of the march.

Major General Philip H. Sheridan was the overall Federal commander in the Valley, but did not arrive on the field until after the battle was concluded.

Custer sent Colonel William Wells' Second Brigade forward to probe the enemy position, which was promptly discovered to be relatively strong.

After sending Lieutenant Colonel Edward W. Whitacker of his staff to personally direct the flanking maneuver, Custer ordered Wells to divert the enemy's attention away from Pennington's movement by launching a diversionary probe on the Confederate center.

In a matter of minutes (one historian stated that the Confederates fired a single volley), Early's army was thrown into panic.

Jedediah Hotchkiss, Early's (and formerly "Stonewall" Jackson's) topographical engineer called the rout, "one of the most terrible panics and stampedes I have ever seen."

[citation needed] Custer's men pursued the routed Confederates for a dozen miles before darkness brought an end to their pursuit.

Regardless of the exact figures, all sources agree that Early lost all of his artillery, wagons, and ambulances, and his infantry was too shattered to form an effective fighting force for the rest of the war.

Sheridan crossed the Blue Ridge Mountains to Charlottesville and then raided south, destroying the James River Canal locks near Goochland Court House.

Captain Christopher C. Bruton of the 22nd New York Cavalry later received the Medal of Honor for the capture of Early's headquarters flag during the battle.

[3] Second Lieutenant Andrew Kuder of Company G, 8th New York Cavalry also received the Medal of Honor for extraordinary heroism and the capture of the flag.