Victoria Pendleton of Britain grabbed her first Olympic gold after dominating Anna Meares of Australia over two legs of the women's sprint final Tuesday.
Meares picked up the silver with China's Guo Shuang winning the bronze.
Pendleton's maiden Olympic crown means she has taken Britain's track cycling gold tally to six.
The 27-year-old Englishwoman is also the first British woman to win Olympic gold in track cycling's blue riband event. It is also Britain's first women's track medal since Yvonne McGregor won pursuit bronze in Sydney eight years ago.
Pendleton competed in Athens where she came away with a ninth place in the sprint and a sixth place in the time trial, won by Meares.
Meares' silver medal is one better than her third place in the sprint in 2004, and is the only medal won by Australia's track team at the Games. In Athens they topped the table with five golds and nine in total.
Guo meanwhile picked up China's first track cycling medal of the Games, and just the second in Olympic history following Jiang Yonghua's silver medal from the women's 500 metre time trial in Athens.
Guo had battled Meares for a place in the final and beat the Australian 2-1. However Guo was disqualified by the race jury for entering Meares' lane as they rounded the final bend in the decider.
She went on to win bronze by dominating Willy Kanis of the Netherlands over two legs.