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Ronald Reagan danced the last waltz with Mrs Thatcher at an emotional farewell at the Whitehouse.
The world leaders brought down the curtain on their eight-year partnership by sweeping around the ballroom to the sounds of "Hello Dolly".
Husband Denis followed with First Lady Nancy Reagan, applauded by a galaxy of political, literary and showbiz stars.
Mrs Thatcher was visibly moved as President Reagan paid her yet another tribute in the after-dinner toasts.
"We love her," he said.
Nancy confessed: "I was feeling very sentimental and nostalgic and got a little teary during Mrs Thatcher's toast to my husband."
Mrs Thatcher said afterwards: "It was a very emotional moment."
The President yesterday backed incoming President George Bush, who takes over in January, and urged America to give him time to slash the nation's £150 billion budget deficit.
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