The Ultimate Fighting Championship III (later renamed UFC 3: The American Dream) was a mixed martial arts (MMA) event held by the Ultimate Fighting Championship (UFC) on September 9, 1994, at Grady Cole Center in Charlotte, North Carolina, United States.

Competitors could only win a match by submission, throwing in the towel, knockout, or referee stoppage.

Replacement fighter Steve Jennum won the tournament by defeating Harold Howard via submission due to strikes, despite only fighting in the finals.

Jennum was a replacement for Ken Shamrock, who made it to the finals but withdrew due to injury.

2Royce Gracie's corner threw in the towel before the fight, so Harold Howard was given a bye into the final.