Manchester United's Darren Fletcher produced a superb strike as he helped his side ease to a win over Everton.
Fletcher converted United's dominance into a goal when he got over a hip-high ball and sent a shot into the top corner from the edge of the box.
Michael Carrick swept in the second after being picked out by Ryan Giggs.
Antonio Valencia completed Everton's misery when his angled far post shot went in via a deflection as the champions ran out comfortable winners.
It was an improved performance from United following two defeats in three Premier League games and came after leaders Chelsea had temporarily moved eight points clear of them by hammering 4-0 Wolves.
Everton had knocked United out at the FA Cup semi-final stage last season but, without a win at Old Trafford in the league since 1992, anything but a United win seemed unlikely - and so it proved.
Phelan salutes fine Fletcher finish
The visitors' tactics played into United hands as a depleted Everton set up to frustrate the home side and invited pressure.
United rarely need any encouragement and they quickly set about trying to engineer a way through the visitors' defence.
Wayne Rooney sliced a shot wide and a Giggs effort was saved by Tim Howard, although a probing United initially struggled to find a cutting edge to their slick build-up play.
Everton striker Louis Saha - back at Old Trafford for the first time since his summer switch to Goodison Park - provided some rare action for Edwin van der Sar when he struck a shot on the swivel which the United keeper comfortably saved.
However, it was the home side making all the running and the inevitability that they would eventually score became a reality in spectacular style.
Fletcher is more renowned for his tigerish style but, when Valencia nodded a Patrice Evra cross into his path, the midfielder showed impressive technique as he let the ball bounce before sending a swerving strike into the top corner.
Everton brought on striker Yakubu to support the isolated Saha and they immediately started to pose more problems.
The substitute played Tim Cahill in behind the United defence, although the alert Van der Sar came out to smother at the midfielder's feet as he tried to dink a shot over him.
Yakubu also held off Wes Brown before angling a left-foot shot wide but Everton's hopes were quickly ended when United went up the other end and added a second.
Moyes 'struggling to find winning team'
Rooney mis-hit a shot towards the corner flag and it ended up finding Giggs, who picked out a lurking Carrick with a precise pass from the left flank and the midfielder sidefooted home from just inside the area.
United were in total command with the only minus for them being that Michael Owen struggled to make an impact on the game as he made only his third Premier League start for them this season.
However, Valencia latched on to a Paul Scholes pass and benefitted from a deflection off Leighton Baines to add the finishing touch to an impressive three points which keeps them in Chelsea's slipstream.
Manchester United manager Sir Alex Ferguson: "We have to look at all the games as must-win now.
"We need to get on a run and be near the top by New Year's Day.
"Then, in the second half of the season we can have a real go and give ourselves a chance."
Everton boss David Moyes: "Unless you are the manager thinking about the best formation to stop Manchester United, you can't really know.
"The fact is when we went two up front we conceded two goals, so there is no guarantee we would have done any better.
"We did not do enough to get a result and cannot complain at the outcome."
90:00+4:35 The final whistle goes and the game is over.
90:00+3:52 Free kick awarded for an unfair challenge on Ayegbeni Yakubu by Paul Scholes. Johnny Heitinga restarts play with the free kick.
90:00+2:29 Outswinging corner taken from the right by-line by Antonio Valencia, Paul Scholes takes a shot from close range clearing the crossbar.
90:00+2:14 Ryan Giggs takes a short corner.
90:00+2:04 Patrice Evra takes a shot. Blocked by Sylvain Distin.
90:00+0:40 Outswinging corner taken from the right by-line by Leighton Baines, clearance by Ryan Giggs.
90:00+0:27 Jack Rodwell takes a shot. Save by Edwin Van der Sar.
89:41 Gabriel Obertan challenges Lucas Neill unfairly and gives away a free kick. Direct free kick taken by Lucas Neill.
88:56 Outswinging corner taken from the left by-line by Leighton Baines, Marouane Fellaini has a headed effort from close in and clears the bar.
88:40 Johnny Heitinga takes a shot. Blocked by Patrice Evra.
88:26 Joao Alves Jo decides to take the corner short.
86:25 Jack Rodwell produces a right-footed shot from just outside the area that goes harmlessly over the target.
85:51 Short corner worked by Leighton Baines.
83:49 Inswinging corner taken from the right by-line by Ryan Giggs.
82:34 Substitution (Man Utd) makes a substitution, with Darron Gibson coming on for Michael Carrick.
82:24 Substitution Tony Hibbert joins the action as a substitute, replacing Louis Saha.
81:37 Substitution Joao Alves Jo is brought on as a substitute for Tim Cahill.
81:02 Corner taken left-footed by Ryan Giggs.
77:16 Ayegbeni Yakubu takes a shot. Save by Edwin Van der Sar.
75:33 The assist for the goal came from Paul Scholes.
75:33 GOAL - Antonio Valencia:Man Utd 3 - 0 Everton Antonio Valencia scores a goal from just inside the penalty area to the bottom left corner of the goal. Man Utd 3-0 Everton.
73:13 Substitution Gabriel Obertan is brought on as a substitute for Michael Owen.
72:01 Shot from just outside the box by Antonio Valencia goes over the bar.
70:40 Free kick awarded for an unfair challenge on Michael Owen by Lucas Neill. Ryan Giggs crosses the ball from the free kick left-footed from left wing, clearance made by Lucas Neill.
70:01 Wayne Rooney takes a shot. Lucas Neill gets a block in.
69:06 Booking The referee books Michael Carrick for dissent.
66:46 Wayne Rooney takes a shot.
66:45 Assist on the goal came from Ryan Giggs.
66:45 GOAL - Michael Carrick:Man Utd 2 - 0 Everton A goal is scored by Michael Carrick from the edge of the penalty box to the bottom right corner of the goal. Man Utd 2-0 Everton.
66:14 Ryan Giggs takes a outswinging corner.
66:01 Michael Owen takes a shot. Blocked by Sylvain Distin.
63:49 Ayegbeni Yakubu produces a left-footed shot from the edge of the area and misses to the left of the target.
62:47 Substitution Rafael Da Silva leaves the field to be replaced by Paul Scholes.
62:21 Wayne Rooney takes a shot.
57:46 Corner taken short by Wayne Rooney.
55:01 Marouane Fellaini is caught offside. Edwin Van der Sar takes the free kick.
54:14 Michael Owen produces a left-footed shot from deep inside the area which goes wide of the left-hand post.
53:38 Ryan Giggs takes a outswinging corner to the near post.
52:26 Johnny Heitinga takes a shot. Edwin Van der Sar makes a save.
49:34 Louis Saha produces a left-footed shot from just outside the box that goes wide right of the goal.
47:29 The offside flag is raised against Michael Owen. Tim Howard takes the direct free kick.
46:16 Antonio Valencia delivers the ball, clearance by Sylvain Distin.
45:43 Centre by Louis Saha, save made by Edwin Van der Sar.
45:01 The referee starts the second half.
45:01 Substitution Ayegbeni Yakubu joins the action as a substitute, replacing Dan Gosling.
Half Time
45:00+2:02 The first half comes to an end.
45:00+1:07 Darren Fletcher crosses the ball, save by Tim Howard.
42:36 Ryan Giggs takes the outswinging corner, clearance by Lucas Neill.
42:18 Michael Owen takes a shot. Save by Tim Howard.
41:33 Corner taken short by Ryan Giggs.
39:55 Nemanja Vidic takes the direct free kick.
39:55 Booking Marouane Fellaini booked.
39:37 Foul by Marouane Fellaini on Darren Fletcher, free kick awarded.
37:55 Darren Fletcher takes a shot. Blocked by Sylvain Distin.
35:23 Booking Tim Cahill goes into the referee's book for unsporting behaviour.
35:18 Tim Cahill is penalised for handball and concedes a free kick. Direct free kick taken by Edwin Van der Sar.
34:03 Assist by Antonio Valencia.
34:03 GOAL - Darren Fletcher:Man Utd 1 - 0 Everton Darren Fletcher grabs a goal from just inside the area to the top left corner of the goal. Man Utd 1-0 Everton.
33:23 Foul by Marouane Fellaini on Darren Fletcher, free kick awarded. Darren Fletcher takes the direct free kick.
31:01 Jack Rodwell produces a left-footed shot from just outside the penalty box that misses to the left of the target.
30:30 Ryan Giggs takes a shot. Blocked by Leighton Baines.
29:33 Corner taken by Ryan Giggs.
28:49 Centre by Patrice Evra, Joseph Yobo makes a clearance.
27:49 Unfair challenge on Tim Cahill by Rafael Da Silva results in a free kick. Leighton Baines takes the free kick.
25:29 Leighton Baines takes the direct free kick.
25:29 Booking The referee shows Rafael Da Silva a yellow card for unsporting behaviour.
25:03 Rafael Da Silva gives away a free kick for an unfair challenge on Louis Saha.
24:53 The ball is swung over by Rafael Da Silva, Joseph Yobo manages to make a clearance.
24:30 Corner taken by Ryan Giggs from the right by-line.
23:14 Tim Cahill concedes a free kick for a foul on Rafael Da Silva. Wes Brown restarts play with the free kick.
21:52 Long range shot by Jack Rodwell goes wide right of the target.
19:52 Louis Saha takes a shot. Save made by Edwin Van der Sar.
18:55 Effort on goal by Antonio Valencia from just outside the penalty area goes harmlessly over the target.
18:24 Louis Saha is penalised for a handball. Edwin Van der Sar takes the free kick.
17:25 Louis Saha concedes a free kick for a foul on Nemanja Vidic. Nemanja Vidic restarts play with the free kick.
17:04 The ball is swung over by Rafael Da Silva, save by Tim Howard.
15:52 Ryan Giggs takes a shot. Save made by Tim Howard.
14:34 Effort from the edge of the area by Wayne Rooney goes wide of the right-hand upright.
11:43 Antonio Valencia takes a short corner.
10:25 The assistant referee signals for offside against Louis Saha. Direct free kick taken by Edwin Van der Sar.
9:48 Foul by Dan Gosling on Patrice Evra, free kick awarded. Patrice Evra takes the free kick.
7:41 Patrice Evra takes a shot. Johnny Heitinga gets a block in.
2:36 Corner taken by Ryan Giggs played to the near post, clearance made by Jack Rodwell.
0:00 The ref blows the whistle to start the match.
Live text and data provided by The Press Association.
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