Wisconsin opened the season by crushing New Mexico State and then subdued Indiana 30–6. On October 13, they defeated Notre Dame 17–8, which gave them a number 10 ranking. The Badgers then defeated the Iowa 42–15, which moved them up to fifth. A 14–7 loss to Ohio State the following week dropped Wisconsin out of the polls (top ten only).
On November 3, the Badgers defeated struggling Michigan on the road, 34–12. This set up following week's homecoming game versus #1 Northwestern at Camp Randall Stadium. Eighth-ranked Wisconsin soundly defeated Northwestern 37–6, and moved up to fourth in the next poll. A win at Illinois set up a #3 Wisconsin vs #5 Minnesota battle for Paul Bunyan's Axe. Wisconsin won 14–9, securing the Big Ten title and the berth in the Rose Bowl, as well as a season-ending #2 ranking.
The Badgers faced #1 USC in the historic Rose Bowl; the first bowl game in college football history between the top two teams in the polls, and the final rankings were already set. At the time, the two major polls (AP, UPI) released their final editions prior to the bowl games, so Wisconsin's runner-up rank went unchanged after the bowl loss. However, the game was still a de facto national championship game as the winner would receive the Grantland Rice Trophy.[6][7]
Quarterback Ron Vander Kelen seemingly "come from nowhere" to lead the Badgers to a conference championship; he had missed the 1960 season due to an injury, and was declared academically ineligible for 1961. He was named the Big Ten Conference MVP for 1962 in his only season of play (except for late-game mop-up in 1959versus Marquette).[8]