The Norwegian carded a six under 64 around the low-scoring TPC Highlands, enough to take him to 20 under for the tournament, one ahead of Scheffler and five ahead of Patrick Cantlay and Akshay Bhatia.
Hovland and Scheffler played together in the third round with the American keeping him mostly a shot adrift. However, the twist came on the very last hole. Hovland drained a six-foot birdie putt, but Scheffler three-putted from 25 feet on the fringe for bogey, resulting in two shot swing and putting Hovland ahead.
"Just had a great time," reflected Hovland.
"It's been a while since I've been in this position. To go head-to-head against the best player in the world and pull off some great shots, it was just a lot of fun."
But the 28-year-old is aware that with the low-scoring conditions continuing on Sunday, anything can happen.
"The beauty of this golf course is that I think Scottie and I have separated ourselves from the rest of the field, but at the same time, 14 or 15 under is still very much in this thing if they go and shoot a very low score tomorrow," he continued.
"So, we still have to go out there and play very similar to what we did today. Otherwise, we're bringing in a lot more guys."
Scheffler, who missed a putt to break 60 on Friday, feels the same way.
"This is a golf course where you can see some numbers be shot," said the world number one.
"You know, guys can shoot pretty low. Going into tomorrow, just try to execute, have a good round and see where that puts me."