The flamboyant singer ended up removing her custom-made Mugler gown to just the sheer bodysuit underneath, leaving nothing to the imagination.
The 25-year-old had just nipple covers and a G-string protecting what little modesty she had left as she danced at the bash at The Standard hotel in New York.
Baring all: Lady Gaga leaves nothing to the imagination in a sheer body suit as she dances at the CFDA Fashion Awards after-party at the Standard Hotel in New York last night
Boogie wonderland: Lady Gaga was in high spirits as she danced beside the DJ booth
The singer was clearly in high spirits after being named Fashion Icon at the CFDA Fashion Awards hours earlier.
Her revealing after-party outfit came hours after Gaga's wardrobe malfunction on the purple carpet at the awards at the Lincoln Center.
Posing with her left arm clutching her turquoise wig, it was hardly surprising that the precarious outfit gave way.
Gaga was assisted by a minder as she arrived at Alice Tully Hall, staggering around in a staggering pair of 24in vertiginous platform heels.
Singalong: Gaga and Patti LaBelle belted out a song
Letting it all hang out: Gaga teamed her over-exposed outfit with a more sensible pair of high heels
Whoops: Lady Gaga reveals more than she bargain for as she poses at the CFDA Fashion Awards at Alice Tully Hall in the Lincoln Center in New York last night in a dramatic punk rock prom outfit
Her dramatic outfit came complete with a ruffled train and with spikes running down between her derrière, begging the question as to how she sat down inside the awards show.
Lady Gaga accepted the Style Icon award from V magazine editor-in-chief Stephen Gan.
Accepting her accolade, she said: 'All of you made me feel like a star before I was.
'As much as this award means to me personally... I just want you to know how much this means to young Americans.'
Designer Marc Jacobs received one of the biggest honours of the night from the Council of Fashion Designers of America - the Lifetime Achievement Award.
Standing out: The singer teamed her look with killer platform heels and had spike on her corseted dress as well as running between her derrière
Make some room: With her large train and 24 inch heels, it's amazing Gaga managed to stay upright
Ruffled train: Gaga completed her look with a turquoise wig with lashings or red lipstick and nail varnish
The 48-year-old said: 'This achievement is born of love, passion, creativity and a hell of a lot of hard work.
'I believe we all know and feel the greatest reward is the process itself.'
The awards were dominated by male designers with Jack McCollough and Lazaro Hernandez of Proenza Schouler being named Womenswear Designer of the Year.
Michael Bastian was named Menswear Designer of the Year, with Alexander Wang achieving Accessories Designer Of The Year.
Helping hand: The singer was assisted by a minder as she arrived, staggering around on her vertiginous heels
Camera-shy: Dressed-down Gaga wasn't quite so ready for the camera earlier on Monday