The owner found the abandoned dog behind an apartment building and first thought it was a rat.
Yoda is a 14-year-old Chinese crested and Chihuahua mix. The previous title holder was a one-eyed Chihuahua named Princess Abby.
For winning, Yoda's owner gets a $1,000 check and Yoda takes home the coveted trophy.
The contest was held at the Sonoma Marin Fair in Petaluma, Calif.