Walle -- who is a beagle-basset-boxer mix -- has a huge head, a short and thick stature, and waddles like a duck won the contest held at the Sonoma-Marin Fair in Petaluma.
"He's unique," said Tammie Barbee, owner of the Walle. The dog won a trophy and USD 1,500 at the competition held on Friday.
"Everybody always says that there's something wrong with him - his head's too big, his back is too short. It's nice to win at something," Barbee was quoted as saying by ABC News.
"You have to see him walk to appreciate him," she said.
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Some of the contest's judges included football legend Joe Montana and Jon Provost, who played Timmy on classic television show "Lassie."
"Walle looked like an experiment that went wrong," said Provost.
For his win, Walle and Barbee will also receive some fame as they are scheduled to appear on the Today Show on Monday and Jimmy Kimmel Live on Wednesday, media reports said.
"The advantage of coming to an Ugly Dog Contest is probably - the less you do, the better," said dog owner Dane Andrew.
Owners also had to provide documentation from a veterinarian - proving their dogs were healthy when registering for the contest.
The breeds of the other contestants included Chihuahua, Chinese Crested, boxer, terrier, pug, poodle and Peruvian, organisers said. Friday's competition marked the 25th anniversary of the ugly dog contest.