The Battle of Paye was a great morale boosting victory for the Filipinos during the Philippine American War. It was fought on December 19, 1899 near San Mateo between the forces of General Henry W. Lawton, and 200 Filipino rifleman under Licerio Geronimo. In this encouner, the Filipinos killed Lawton, and repelled his attack.

This also would be the climax between the two battalions. Lawton had successfully overrun and destroyed the Morongs headquarters, and also destroyed a number of their supply and ammunition depots. On the other hand, General Licerio enveloped and captured 140 of Lawton's command. This battle would be the final confrontation between the two forces.

The battle began while Lawton and his men en route to try and take San Mateo, came under fire by insurgents under cover in the dense jungle, and secure trenches in the town. In fact, very few of the enemy were even seen.

Lawton's forces dug in, and engaged in a fierce fire-fight. During which, Lawton walked up and down the line rallying his men and was in full sight of the enemy snipers. When his officers informed him of this Lawton only laughed. But Lawtons reckless bravery soon got the better of him. For he was struck in the heart by an insurgent's bullet and died instantly.

The death of their commander was a huge blow to Lawton's men, and after taking scores of casualties without being able to sucessfully retaliate, they withdrew.

The Filipinos cheered as their enemy retreated, and celebrated their first real victory. However this would not be the last victory that the Morong Command would see. Many of the rifleman who fought in this battle, including Colonel Maximo Abad (the commander of the forces at Pulang Lupa), would later annihilate a company of American infantry in The Battle of Pulang Lupa.

All tolled Lawton's command suffered around 14 deaths, and 15 wounded. The well concealed Filipinos on the other hand suffered very few losses, four killed or wounded.