The 33-year-old Englishman, armed with the conviction that this was to be his race, realised the dream that had always eluded his late father, Graham, as, for once, a flaw was revealed in the strategy of Michael Schumacher and Benetton-Ford.
Schumacher was given a five second stop-and-go penalty for twice overtaking pole position holder Hill on the formation lap, misdemeanors which yielded control to Hill and consigned the championship leader to second place.
It might have been worse for the German. He did not respond to the black flag which indicated he should return to the pits in the prescribed period, but Benetton pleaded the mitigating circumstances of confusion and, rather than disqualify Schumacher, the stewards 'severly reprimanded' driver and team, and imposed a dollars 25,000 ( pounds 16,000) fine 'for not having full knowledge of the regulations.'
Williams felt Schumacher, leading Hill by 33 points, should have been excluded, as Nigel Mansell was five seasons ago in Portugal. Frank Williams, the team principal, said: 'It is quite clear in the rules. The black flag means he must come in immediately and if, for three laps, he ignores it, he is out of the race.'
Mansell was not only disqualified at Estoril, he was also suspended for the following race and fined dollars 50,000 ( pounds 32,000). The next race in this championship is the German Grand Prix. Schumacher banned from for his own race? Hardly.
Flavio Briatore, the managing director of Benetton, said: 'We were given a piece of paper on which was written 'five seconds penalty for overtaking car number 0 during the formation lap'. The stop-go was not mentioned. We didn't ask Michael to come in and they showed him the black flag.
'I spoke to the clerk of the course and it was agreed that, because of the misunderstanding, Michael would then come in for the stop-go. By that time it was nearly impossible to win the race.'
There were grumblings lower down the order, too. Behind Jean Alesi, a comfortable third for Ferrari, Mika Hakkinen, in a McLaren-Peugeot, and Rubens Barrichello, driving a Jordan-Hart, collided in the last-gasp surge for fourth place.
Barrichello sought refuge in the pits, while Hakkinen was pushed out of a gravel trap by marshalls. No one lodged an official protest, however, so Hakkinen was placed fourth and Barrichello fifth.
David Coulthard, relegated to the back of the field after stalling on the grid and causing the start to be aborted, revelled in the opportunity to carve his way through the field and collected the final point with sixth place in the other Williams.
Schumacher, seemingly practising his start, perhaps even indulging in a little psychological sparring, catapulted his car from the grid on the formation lap. He again went ahead of Hill on that lap and although he eventually allowed Hill through, the damage had been done.
An uncharacteristically glum Schumacher was evasive on the issue. 'Damon was a little slow and I didn't want to break hard and lock up,' he fumbled. 'I thought the five seconds would be added to my race time.'
Whatever assistance Hill had from the hapless Benetton camp, he was fired up for this race as no other. He had virtually pinned his reputation on the outcome. And when he had accomplished what his father could not, he expressed his emotions: 'This is the best day of my life. It is like a dream. It may sound big-headed, but I just know this was going to be my day.
'I won pole, I won the race. I feel everything has come together here. I felt I was destined to win this race. I want to thank everyone at Williams for getting behind me and thank all the others who got behind me.
''The team have come through misery this year. I had a lot of motivation for this race, not least because my father had never won it. This was the hole left in my father's record.' Hill was already in the mood for celebration and his mother, Bette, said: 'I'm sure Graham is up there somewhere watching, and having a party.'
Schumacher was the only driver able to keep in touch with Hill, Ferrari again failing to sustain their qualifying form in the race. And once more Schumacher was quicker in and out of the pits at the first stop and assumed command. By then, however, his team and officials were debating the penalty that was to prove decisive.
Hill said: 'I saw the black flag, but I didn't know what it was for. It was a bit of a godsend for us. It would have been a titanic struggle.'
According to Schumacher, gearbox problems restricted him in the later stages and Hill was afforded the luxury of saving those closing laps, urged as he was by a British crowd seeking a new hero during Mansell's exile.
Schumacher had the grace to congratulate Hill and say: 'This is something special for Damon, in front of his home crowd. He had a superb race.'
All Germany awaits something special for Schumacher at Hockenheim, at the end of the month, but the man expected to deliver the nation's first World Championship fears the growing threat from Williams and Ferrari on that and other power circuits to come.
For the sake of the contest and the spectacle, we must hope his anxieties are justified.
McLaren-Peugeot are still out of touch with the serious stuff, though Martin Brundle would have been thankful just to run yesterday. He pulled his flaming car off at the start.
Eddie Irvine's Jordan also missed the main event, its engine seizing on the formation lap. Mark Blundell, who had to avoid Brundle's blazing McLaren at the green light, retired his Tyrrell-Yamaha at a third distance with an electronics problem.
Johnnie Herbert again stayed out there but his Lotus-Mugen Honda was a distant 12th.
DETAILS FROM SILVERSTONE
BRITISH GRAND PRIX (303.42km, 188.52 miles, 60 laps): 1 D Hill (GB) Williams-Renault 1hr 30min 03.640sec (ave speed 202.143kph, 125.612mph); 2 M Schumacher (Ger) Benetton-Ford +18.778sec; 3 J Alesi (Fr) Ferrari +1min 08.128sec; 4 M Hakkinen (Fin) McLaren-Peugeot +1:40.659; 5 R Barrichello (Bra) Jordan-Hart +1:41.751; 6 D Coulthard (GB) Williams-Renault +1 lap; 7 U Katayama (Japan) (Tyrrell-Yamaha) +1; 8 H- H Frentzen (Ger) Sauber-Mercedes +1; 9 J Verstappen (Neth) Benetton-Ford +1; 10 C Fittipaldi (Bra) Footwork-Ford +1; 11 P Martini (It) Minardi-Ford +2; 12 J Herbert (GB) Lotus-Mugen Honda +2; 13 O Panis (Fr) Ligier-Renault +2; 14 E Bernard (Fr) Ligier- Renault +2; 15 O Beretta (Fr) Larrousse-Ford +2; 16 D Brabham (Aus) Simtek-Ford +3; 17 J-M Gounon (Fr) Simtek-Ford +3. Did not finish (not classified): 18 M Alboreto (It) Minardi-Ford 48 laps completed; 19 G Berger (Aut) Ferrari 32; 20 M Blundell (GB) Tyrrell- Yamaha 20; 21 E Comas (Fr) Larrousse-Ford 12; 22 A de Cesaris (It) Sauber-Mercedes 11; 23 G Morbidelli (It) Footwork-Ford 5; 24 A Zanardi (It) Lotus-Mugen Honda 4; 25 M Brundle (GB) McLaren-Peugeot 0; 26 E Irvine (GB) Jordan-Hart 0. Fastest lap: Hill (lap 11) 1min 27.100sec (130.631mph).
DRIVERS' WORLD CHAMPIONSHIP (after eight rounds): 1 Schumacher 72pts; 2 Hill 39; 3= Alesi, Berger 17; 5 Barrichello 9; 6 Hakkinen 7; 7= N Larini (It) Ferrari, Brundle 6; 9 Frentzen 5; 10= Katayama, K Wendlinger (Aut) Sauber-Mercedes, Blundell, De Cesaris, Martini 4; 15= Fittipaldi, Coulthard 3; 17= Comas, Alboreto, Irvine, J J Lehto (Fin) Benetton- Ford 1.
CONSTRUCTORS' WORLD CHAMPIONSHIP: 1 Benetton-Ford 73pts; 2 Williams-Renault 42; 3 Ferrari 40; 4= Jordan-Hart, McLaren- Peugeot 13; 6 Sauber-Mercedes 10; 7 Tyrrell- Yamaha 8; 8 Minardi-Ford 5; 9 Footwork- Ford 3; 10 Larrousse-Ford 1.
Guy Hodgson, details, page 39