Kimi Raikkonen [ Images ], the 2007 world champion whose Ferrari [ Images ] team are threatening to walk away at the end of the season in a standoff over the 2010 rules, joined the Briton on the front row in a sign of the Italian team's resurgence after a dismal start to the year.
"Today was a really tough fight," said Button of a seventh career pole position secured with a flying lap right at the end of qualifying.
"It was manic, as it always is in Monaco, It's good to have come away with the pole, I was right on the edge," added the Monaco resident, favourite for victory on a street circuit notoriously difficult for overtaking.
"I think Jenson is getting into the habit of saving the best for last," team boss Ross Brawn [ Images ] told BBC television. "He knew that was the lap where he had to produce and he's just driving exceptionally well at the moment."
While one Briton celebrated, another had a nightmare afternoon.
The 24-year-old lost the back end of the car on the entrance to the Mirabeau hairpin and hit the tyre wall in the first part of qualifying.
With debris on the track, the session was halted briefly while Hamilton, who qualified 16th, made his way back to the garages.
"Going for a race win is for sure over," Hamilton told the BBC. "I just don't know what I was thinking, I made a mistake. It's a shame because the weekend had been going so well. I want to apologise to the team for wasting their time."
However, Force India [ Images ] were on a high after breaking into the second qualifying phase for the first time this season with Giancarlo Fisichella [ Images ] qualifying 13th and Adrian Sutil [ Images ] 15th.