Hayden's win was his first of the season and second of his career

Edwards, riding a Yamaha, led for most of Saturday's race but was passed by championship leader Hayden late on.

Edwards regained the lead but, with the finish line in sight, lost control of his bike at the final chicane, handing victory to Honda rival Hayden.

Shinya Nakano took second, Dani Pedrosa was third and Valentino Rossi eighth.

World champion Rossi, who raced despite struggling with a broken bone in his hand, started from 18th spot on the grid but battled his way through the field.

The Yamaha rider suffered the injury on Thursday and only made the decision to race on the morning of the race after suffering discomfort in Friday's qualifying.

"That was a really hard race for me," Rossi said. "I was in some pain especially at the start and I wasn't able to ride at 100% of my ability."

The result was heartbreaking for Edwards, who had set the pace for most of the race.

I just couldn't really get close enough and I knew I needed to try and do something different Nicky Hayden

But Hayden doggedly pursued him to set up a thrilling battle in the closing laps and claimed the lead on the penultimate lap only to lose it again soon after.

Edwards looked as if he would claim his first win of the season, but he ran over the grass on the final chicane and lost his back wheel.

The Yamaha star was sent flying, giving Hayden, who had over-shot the last corner, an easy run-in.

Edwards picked up his battered bike and pushed it over the line to finish in 13th place.

Hayden, whose only other MotoGP victory came at the US Grand Prix last year, now leads the championship by 42 points from Honda's Pedrosa.

"It was super-important to win," said Hayden. "Everyone was telling me be careful, be careful, just get a few points but the bike was too good and I had to go for the win.

"Colin was really so smooth, so fast out there that I didn't know if I had anything for him. I just couldn't really get close enough and I knew I needed to try and do something different.

"I changed something on one section of the track that made all the difference in the world and the last few laps I was able to close down on him and get the win."

Briton James Ellison crashed out on lap four after moving up to 12th, revealing later that he may have broken a bone in his foot.

"It definitely feels broken," he said. "I need to get it checked out. I can feel things moving around.

"But I can still stand on it so it is going to be okay for the British Grand Prix next week whatever happens."

Dutch GP result:
1 Nicky Hayden (US) Honda 42 minutes, 27.404 seconds
2 Shinya Nakano (Jpn) Kawasaki 42:32.288
3 Dani Pedrosa (Sp) Honda 42:34.929
4 Casey Stoner (Aus) Honda 42:34.959
5 Kenny Roberts Jr (US) KR211V 42:35.482
6 John Hopkins (US) Suzuki 42:44.469
7 Marco Melandri (It) Honda 42:45.494
8 Valentino Rossi (It) Yamaha 42:51.355
9 Carlos Checa (Sp) Yamaha 42:56.431
10 Chris Vermeulen (Aus) Suzuki 42:59.031
11 Makoto Tamada (Jpn) Honda 43:00.245
12 Alex Hofmann (Ger) Ducati 43:01.547
13 Colin Edwards (US) Yamaha 43:07.816
14 Randy de Puniet (Fr) Kawasaki 43:31.052
15 Loris Capirossi (It) Ducati 43:44.707

Rider standings:
1 Nicky Hayden (US) Honda 144pts
2 Dani Pedrosa (Sp) Honda 102
3 Loris Capirossi (It) Ducati 100
4 Valentino Rossi (It) Yamaha 98
5 Marco Melandri (It) Honda 98
6 Casey Stoner (Aus) Honda 78
7 Colin Edwards (US) Yamaha 63
8 Shinya Nakano (Jpn) Kawasaki 57
9 Kenny Roberts Jr (US) KR211V 55
10 Makoto Tamada (Jpn) Honda 54

Constructor standings:
1 Honda 176pts
2 Yamaha 127
3 Ducati 109
4 Suzuki 64
5 Kawasaki 57