We propose a causal relationship between the creation of the giant impact basins on Mars by a large asteroid, ruptured when it entered the Roche limit, and the excitation of the Martian core dynamo. Our laboratory experiments indicate that the elliptical instability of the Martian core can be excited if the asteroid continually exerts tidal forces on Mars for ∼20,000 years. Our numerical experiments suggest that the growth-time of the instability was 5,000–15,000 years when the asteroid was at a distance of 50,000–75,000 km. We demonstrate the stability of the orbital motion of an asteroid captured by Mars at a distance of 100,000 km in the presence of the Sun and Jupiter. We also present our results for the tidal interaction of the asteroid with Mars. An asteroid captured by Mars in prograde fashion can survive and excite the elliptical instability of the core for only a few million years, whereas a captured retrograde asteroid can excite the elliptical instability for hundreds of millions of years before colliding with Mars. The rate at which tidal energy dissipates in Mars during this period is over two orders of magnitude greater than the rate at which magnetic energy dissipates. If only 1% of the tidal energy dissipation is partitioned to the core, sufficient energy would be available to maintain the core dynamo. Accordingly, a retrograde asteroid is quite capable of exciting an elliptical instability in the Martian core, thus providing a candidate process to drive a core dynamo.