The Bulldogs pulled clear in the second half to win their third match of the season 15.17.107 to 12.5.77.
It was the first time the Bulldogs had beaten Melbourne since 1996.
Nathan Brown, who kicked 4.4, led the goalscoring and was also best afield, while midfielder Scott West and defenders Luke Penny and Kingsley Hunter were high among the Bulldogs' best.
Russell Robertson was freakish at times and kicked three goals for Melbourne, as did Cameron Bruce, with Daniel Ward and Adem Yze also standing out in a poor overall effort from the Demons.
Melbourne kicked two goals midway through the final term to trail by 22 points, but never looked like being able to take the game.
As the scoreline suggests, the 'Dogs could have killed off the game before the final quarter, when they led by 26 points.
Brad Johnson, rotating with Rohan Smith between the wing and full-forward, had plenty of the ball but kicked 2.5 to be the worst offender in front of goal for the Bulldogs.
In a terrible blow, the Demons lost Brad Green for the next six weeks after he broke his wrist in a contest with Chris Grant just before half time.
Defender Peter Walsh is also under a fitness cloud after leaving the field with a leg injury.
Ruckman Jeff White, who missed last week with a knee injury, also spent time on the bench and appeared underdone.
The Bulldogs started sharper and led by three goals midway through the first quarter.
But goals to Robertson and Bruce late in the term kept the Demons in touch and they trailed by a goal at the first change, the sixth time this season they had failed to win the opening quarter.
The 'Dogs then kicked three behinds to open the second term and this was typical of how the game was going.
Melbourne's two goals in the second term, to Bruce and Yze, were against the trend of play.
Johnson finally kicked his first goal late in the second term, baulking around Alistair Nicholson as the Demons defender stood the mark outside 50m and then kicking long.
The Bulldogs kicked five goals to three in the third quarter, despite several basic skill errors.
Scoreboard:
WESTERN BULLDOGS: 5.4, 7.11, 12.13, 15.17 (107)
MELBOURNE: 4.4, 6.5, 9.5, 12.5 (77)
Goals: Western Bulldogs: N Brown 4 B Johnson 2 R Smith 2 T Bartlett S Cox C Grant B Harrison P Hudson K Hunter S West. Melbourne: C Bruce 3 R Robertson 3 D Neitz 2 A Yze 2 B Green T Johnstone.
Best: Western Bulldogs: N Brown S West L Penny B Johnson K Hunter. Melbourne: A MacDonald D Ward C Bruce.
Injuries: Western Bulldogs: Nil. Melbourne: D Ward (knee) B Green (bruised arm) M Collins (knee) P Walsh (hamstring) D Neitz (eye).
Reports: Nil.
Umpires: B Allen D Morris S Hanley.
Official crowd: 32,299 at MCG.
