The Brexit Party leader, who bowed out as an MEP last week after more than two decades in Brussels, said the town symbolised what Brexit is all about.
He said people in Dudley had "sussed" Brexit out a long time ago, before raising a glass of red wine in a toast to the town's future success.
WATCH Nigel Farage's toast here:
In the video clip, Mr Farage says: "People of Dudley, I have visited your town many, many times. I've always had the most amazing reception, and lots of pork scratchings into the bargain as well.
"And you're one of those areas that symbolises what Brexit is all about. You sussed this out a long time ago.
"You've been defiant throughout, you've backed a whole load of campaigns that I have been part of.
"It's been amazing, because you are not just the heart of England geographically, but you're the heart of England as people.
"You're patriotic, you believe in our country and you know we've got a very great future coming up.
"So look... enjoy this most incredible, historic moment. I raise my glass to the people of Dudley."
Mr Farage has frequently drawn large crowds to political rallies in Dudley town centre, most recently last May ahead of the Brexit Party's strong showing in the European elections.
He was due to host a rally at the Town Hall prior to the general election in November, but pulled out at the last minute.
The move came after he was left with no candidates in the borough following Rupert Lowe's decision to stand down and give the Tories a free run at Dudley North.
Last night Mr Farage hosted a Brexit celebration in Parliament Square to mark Britain's departure from the EU.