The 62-year-old actress, who came into the results show in last place, failed to capture enough viewer votes to overcome her low score. Judges said her rumba was dull and technically imprecise, awarding her just 21 out of 30 points.
"It lacked spontaneity for me," said head judge Len Goodman. "It was too careful. I was disappointed with the performance."
Still, Presley was gracious, telling the judges, "I applaud you. You did a great job," as she left the ballroom.
"This has been an incredible experience," she said. "It is life-changing. ... I learned so much about myself and all the things I can do."
Celebrities weren't the only ones trying to charm the judges on the ABC dance-off. The "ballroom dancing kids" competition, which began last week, continued Tuesday with two pint-sized pairs vying for a chance to give a command performance on the show, which draws nearly 20 million viewers each week.
Tuesday's show also featured an upbeat performance by hybrid rockers Ozomatli and a tender tune by balladeer James Blunt, who sang his new single, "Carry You Home."
Judges scores are combined with viewer votes to determine which couple is eliminated each week.
Seven contestants remain, including pro football player Jason Taylor, Olympic skater Kristi Yamaguchi, R&B singer Mario, and actors Shannon Elizabeth, Cristian de la Fuente, Marlee Matlin and Marissa Jaret Winokur.
Adam Carolla, Steve Guttenberg, Monica Seles and Penn Jillette have already been eliminated.