Most common of all large Colt percussion revolvers. Approximately 10,500 were manufactured from 1851 through 1861. Quite similar in appearance to Second Model. Obvious external difference is the round trigger guard. Third Model Dragoon was first Colt revolver available with a detachable shoulder stock. There are three basic types of stocks and all are quite rare as only 1,250 were produced. There are two other major variations we will note—\C.L.\" Dragoon, which was a militia-issued model and is rare; late-issue model with an 8\" barrel. These are found over serial number 18000 and only 50 were produced.

A historic cased Gustave Young-engraved ivory-gripped Colt Third Model Dragoon was sold for $805,000 at a Texas auction in 2011. Revolver was inscribed \"Colonel P.M. Milliken\". Milliken was an officer of the 1st Ohio volunteer calvary and killed leading a charge against the Confederate Army at Stone River, Tennessee in 1862. Two other Colt percussion revolvers were sold at the same auction for more than $800,000. (See Texas Paterson No. 5 and Model 1861 Navy listings.) Such prices are extreme exceptions to values of typical models."