Bulnes decided to attack the Confederates at Punyán Hill first. Under Elespuru, Silva's Aconcagua Battalion was dispatched to clear out the hill. Silva succeeded and forced out de la Peña's, but Elespuru was mortally wounded. After them, Bulnes sent the Portales, Valdivia and Huaylas battalions.
At 9 am, a column of 400 soldiers under Jerónimo Valenzuela and formed by companies offrom the Carampangue, Santiago, Valparaíso and Cazadores de Perú battalions, was sent to the Pan de Azúcar Hill to assail Col. Quiroz' position. The Restorers began the slowly climbing of the hill slope under heavy fire.
The Restorer columns sustained severe losses. Valenzuela and all the officers were killed. The Carampangue's company alone was led in the end by Sergeant [[Candelaria Pérez|Candelaria Perez]]. The rest of the companies were severely decimated too. Nevertheless, the Restorers finally reached the summit and bayoneted the Confederates out of Pan de Azúcar Hill, annihilating Quiroz' forces. All of the Confederatesdefenders were killed, including Quiroz himself.<ref name= "Capitan">{{cite web |url= http://www.elgrancapitan.org/portal/index.php/articulos/historia-militar/903-la-batalla-de-yungay |title= La Batalla de Yungay |author= El Gran Capitan |accessdate= 2008}}</ref> The Valparaíso Battalion Sergeant Jose Alegría raised the Chilean flag on the Pan de Azúcar Hill summit.<ref name="Ejército">{{cite web |url=http://www.ejercito.cl/historia/combates_yungay.php |title=Batalla de Yungay |author=Ejército de Chile |accessdate=2008 |deadurl=yes |archiveurl=https://web.archive.org/web/20100213155054/http://www.ejercito.cl/historia/combates_yungay.php |archivedate=2010-02-13 |df= }}</ref>
