The Italian GP got underway with Hill and Villeneuve battling for the lead, or at least they were for the first 100 metres when Jean Alesi surged past everyone to take the lead into the first corner. Jean had produced an absolutely amazing start to rocket from sixth to first. At the first chicane Hill took the racing line and Villeneuve was forced to run wide, a process which would damage his car. Schumacher had made a relativly poor start and was passed by the two McLarens. Before the first lap was over Hill had passed Alesi. Soon after, Hakkinen passed Villeneuve.
The first retirement of the day was David Coulthard, he hit the tyres on the chicane as they bounced back from Villeneuve clipping them as he passed. More were to follow and the tyres on the apex of the chicanes would play a major part in the race. Villeneuve dropped back as a result of clipping the tyres. Hakkinen was another tyre victim, this time however, he kept his car running and returned to the pits for a new nose cone. On lap 4 Berger went out and on lap 5 race leader Damon Hill hit the tyres on the exit from the chicane and spun out of the race. This left the running order Alesi, Schumacher, Irvine, Villeneuve, Brundle and Barrichello.
On lap 7 Frentzen spun out, followed by Salo on lap 10. Villeneuve was forced to pit on lap 11 rejoining in tenth place behind Hakkinen. Alesi had a shrinking 1.135 second lead and both he and Schumacher were pulling away from the rest of the field. Pedro Diniz and Mika Hakkinen both moved up a place when they passed Jos Verstappen and by lap 16 Schumacher had closed right up on Alesi. Diniz moved into the points on lap 18 when he got past Johnny Herbert, Hakkinen following on lap 19.
At the front Alesi and Schumacher were closing on Rosset and on lap 22 Schumacher set a fastest time of 1.22.272. Eddie Irvine was the next tyre casualty, he hit them on lap 23 damaging his fornt wheel, this moved Hakinen into the points and the running order was now Alesi, Schumacher, Brundle, Barrichello, Diniz, Hakkinen, Herbert, Villeneuve, Rosset and Katayama.
Michael Schumacher set another fastest lap time on lap 26, he went round in 1.27.244 as he and Alesi were about to lap the struggling Jacques Villeneuve. They lapped him on lap 29 just as the pit stops started. Brundle was first in (10.3) followed by Herbert (9.7), Barrichello (9.9), Schumacher (8.8) and Hakkinen (10.5). Between Alesi's pit stop and his own, Schumacher set another fastest lap on lap 32 (1.26.391) and his pace was enough for him to pit and get back out in front of the Benetton driver.
By lap 36 he had a 7 second lead and was again closing on Villeneuve to re-lap him. Despite his lead and the team telling him to take it easy, Schumacher continued to extend his lead. On lap 39 Rosset went off with broken front suspension and Schumacher, like many others in the race, clipped the tyres on the entrance into the chicane. His was more of a glancing blow and the Ferrari remained intact. Villeneuve pulled into the pits (7.9) and rejoined in eigth position behind Johnny Herbert. On lap 43 the running order was Schumacher, Alesi, Hakkinen, Brundle, Barrichello, Diniz, Herbert, Villeneuve, Verstappen and Katayama.
Brundle and Barrichello were fighting for fourth place and Johnny Herbert was catching Diniz.
The final laps of the race saw Schumacher set two new lap records, first on lap 48 he went round in 1.26.118, and then on lap 50 he improved that time to 1.26.110. The race finished Schumacher, Alesi, Hakkinen, Brundle, Barrichello and Diniz. Johnny Herbert had a problem at the end of the race and was passed by Villeneuve and Verstapen.