On the eighth lap, Marquez was close enough to look at retaking the lead, but as he ran wide in Lorenzo's wheeltracks into Turn 3, Dovizioso relegated him to third. I was losing everywhere but much faster there, maybe because he was on softer tyres. Everything is changing in this year's championship.
The pair emerged as the leading contenders for victory after a frantic start to the Austrian Grand Prix, with Dovizioso ultimately prevailing by 0.176 seconds despite a desperate last-corner lunge from Marquez.
"It was a stressful last lap but I'm happy with how we've worked throughout the weekend", he added.
The Ducati rider came out top in a last corner scrap with the reigning champion at Spielberg to take his third victory of the campaign. Marquez then struck back against Dovizioso, with 18 laps to go and everything still in the air.
"I arrived on the limit and I tried [to overtake] on the last corner, because if not, I can not go to sleep [tonight], I have to try". "It was hard for me because I lost a lot in the two left corners, and it was easy for him to overtake me - I didn't know he wasn't close and I closed the door, so he had chance to catch me again".
"Dovi deserves it because when he was behind me he was comfortable, and when I was behind him I was on the limit".
"I tried to listen to his engine and on the second last corner he opened his throttle earlier than me so I knew that he would be trying everything at the last corner to overtake me".
Pedrosa completed the podium, four seconds ahead of Lorenzo. Zarco took fifth after holding off Vino. ales and coming home top Yamaha, with Rossi crossing the line in P7. Aspar Ducati's Alvaro Bautista finished 8th with Avintia Ducati's Loris Baz finished 9th.
Despite early heartbreak for Pol Espargaro, there remained something impressive to cheer for Red Bull KTM Factory Racing at their first home GP - with wild card test rider Mika Kallio riding a solid race into 10th.
Dovizioso then made it three-wide for the lead on the following straight and was even ahead at Turn 4, but ran wide, handing first place back to Marquez.
Dovizioso's third win of the season moved him up to second behind Marquez in the standings, 16 points back, as Spaniard Maverick Vinales dropped to third after finishing only sixth.