After labouring with neck pain on Saturday, Sebastian Vettel found the flawless tonic 24 hours later - matching Alain Prost's total of 51 Grand Prix victories and denying main rival Lewis Hamilton a record-setting win in his home race.
After slipping behind Vettel off the line after getting too much wheelspin and then losing a position to Mercedes teammate Valtteri Bottas, Hamilton's hopes of a home victory were dealt a blow when he was struck by Kimi Raikkonen at Turn 3 after the Finn locked up.
"You're a lion", the elated team told him over the radio at the chequered flag as they celebrated Ferrari's first win in Britain since 2011.
Raikkonen ended up a close third, after incurring a 10-second penalty.
Lauda, who won two of his three championships with Ferrari, said: "The accident was unfair basically because it's the second time a Ferrari hits us in the first corner and it's not amusing, but that's the way it is".
Behind, Hamilton moved up to third as Max Verstappen and Raikkonen pit, with Ricciardo staying in sixth as the safety vehicle was called just after he had made a second stop and handed track position to Raikkonen. That was an opportunity for me to get up into third.
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Hamilton was not impressed with Raikkonen though and took a veiled dig at the Ferrari man following the race.
Ricciardo is fourth on 104 points, with Bottas sitting just two points below him.
Then when Sauber's Marcus Ericsson skidded off with 19 laps left, Hamilton was handed another lifeline with a safety auto.
The Swede was unhurt and climbed out to applause from the crowd as a Safety Car was deployed.
Vettel, who increased his narrow lead in the driver standings, responded by dismissing the talk as "quite silly".
Red Bull racer Max Verstappen says the power deficit between his vehicle and that of Mercedes and Ferrari was "tragic" and that "on the straights it's like you are driving in a different series". Who is he to judge what the drivers are doing in the vehicle?
Vettel in contrast was rewarded for a brilliant start in which he overtook Hamilton within metres on the opening straight.
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But Wolff's counterpart at Ferrari, Arrivabene, was livid. "I took the 10 seconds and kept fighting, that's how it goes". Hamilton was able to pull out some quick laps, yet Vettel was quick to respond, keeping his rival at an arm's length.
Lewis Hamilton has promised he will "not give up" in what he describes as the "most intense battle we've probably all had" after the disappointment of not winning his home British Grand Prix. The collision controversy aside, it was still a stunning drive in his home Grand Prix as he ploughed back through the field, and combined with a bold strategic gamble that nearly paid off, Mercedes should take heart that they were nearly able to pull off what would have been one of the most spectacular comeback wins of all time. It nevertheless marked an impressive drive from the 2007 world champion following his earlier penalty.
Vettel was left stuck between the two Mercedes drivers as Bottas took the lead. Magnussen lost a place to Alonso on the final lap, finishing the race ninth.
Brendon Hartley's miserable weekend continued as his Toro Rosso was wheeled back early. They made mistakes but that's what racing is all about.
Vettel finished 2.264 seconds ahead of Hamilton.
Monaco's Charles Leclerc had also been on course to score for Sauber but was ordered to stop after an unsafe release from the pits while in eighth place.
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