The Monaco GP started with a wet track as rain had soaked the circuit hours before the race was due to start. With all the drivers starting on wet weather tyres the field was expected to bunch and a collision at the first corner, like many times before looked possible. At the start Hill managed to get away brilliantly and lead into the first corner, within the first 30 seconds of the race, Jos Verstappen had crashed into the barriers, Giancarlo Fisichella had spun out of the race and World Champion Michael Schumacher also crashed into the barriers and out of the race. Shortly afterwards Rubens Barrichello spun and at the end of the first lap Hill had a 4 second lead over second placed Alesi.

Hill continued to lap quicker than the following drivers, pulling out approximately 3 seconds a lap, the running order was Hill, Alesi, Berger, Irvine, Frentzen, Coulthard, Villeneuve, Salo and Herbert with Hakkinen 10th.

On lap 4 Katayama and Rosset both went out and Hill's lead had increased to 9.576 seconds. By lap 9 Hill was starting to set fastest laps and Irvine was holding up Frentzen and the following cars. Diniz had joined the other retired drivers after spinning out.

Gerhard Berger came into the pits on lap 10 and after a lengthy stop he retired his Benetton, gearbox problems being the reason given. Until then he had been running a comfortable third and Benetton were looking back on form. By lap 11 there were only 12 cars left running, the order on the track was Hill, Alesi, Irvine, Frentzen, Coulthard, Villeneuve, Salo, Hakkinen, Panis, Brundle and Badoer. This formation continued until lap 17, when Frentzen increasingly frustrated with Irvine attempted to pass, the rear wheel of Irvine's Ferrari clipped Frentzen's front wing and the Sauber driver was forced to slow and make his way into the pits for a new nose cone. This allowed David Coulthard to pass and moved everyone up one place. Frentzen managed to rejoin the race 11th. Frentzen then started trading fastest laps with race leader Damon Hill and Jean Alesi joined in from lap 23. David Coulthard set the fastest lap of the race for a driver on wet tyres with a time of 1.41.046 on lap 27.

Damon Hill came into the pits on lap 29 and switched to slick tyres, this allowed Jean Alesi to go into the lead, Irvine, Panis and Salo all followed Hill into the pits to switch to dry tyres. The following lap saw the rest of the main contenders also pit for slick tyres. The switch was justified as on lap 30 Heinz Harald Frentzen set a fastest lap of 1.31.689 almost ten seconds quicker than Coulthard's previous fastest lap. The running order was now Hill, Alesi, Irvine, Panis, Coulthard, Herbert, Brundle, Villeneuve, Salo, Hakkinen, Frentzen, Badoer.

Martin Brundle spun out on lap 31 while on new tyres and Olivier Panis became the fastest man on the track. He began to close on Eddie Irvine and on lap 33 they touched, causing Irvine to stall his engine. Eddie managed to roll down the hill and bump start his car to continue in the race but he had to pit for a new nose cone. By lap 39 Panis had set a fastest lap of 1.26.787 and was beginning to close on Alesi.

Damon Hill's race came to an unexpected end when entering the tunnel on lap 41 his Renault engine expired in a plume of smoke, he coasted up the escape road and left his car visibly frustrated at the lost chance of winning at Monaco.

Hill's misfortune was a gift to Alesi, driving much more like the Alesi of old he seemed in total command of the race and he began to trade fastest laps with the flying Ligier of Olivier Panis who was now second.

On lap 54 Alesi came in for his last stop, one which was brilliantly executed by the Benetton crew, slick and quick allowing him to get back out still in front of Panis. The running order on lap 56 was Alesi, Panis, Coulthard, Herbert, Villeneuve, Salo, Hakkinen, Frentzen, Irvine and Badoer. Only ten cars left!

On lap 59 Jean Alesi was really flying and he set the fastest lap of the race with a time of 1.25.205, he then returned to the pits and left with a fresh set of tyres dropping down into seventh place. This meant that a Ligier was in the lead!. Alesi came back into the pits on lap 61 and retired (9 cars left)

On lap 65 as Herbert, Villeneuve, Salo and Hakkinen came up to lap the Forti of Badoer a mis-understanding saw Badoer squeeze Villeneuve into the wall and both drivers were out. (7 cars left) It now left Panis in the lead, followed by Coulthard, Herbert, Salo, Hakkinen, Frentzen and Irvine. Irvine was some way behind in the race, on the track he was between Panis and Coulthard, Coulthard's inability to catch Irvine or Panis was put down to the set up of his car, a set up which worked well in the wet when speeds were lower. But with the race now dry, his car was too "soft" to be really on the boil. Irvine came into the pits on lap 70 for the final time and on exiting the pits he was in front of Salo and Hakkinen on the track. He spun on his new tyres and an unsighted Salo and Hakkinen rounded the corner and crashed into the stationary Ferrari. The crash was a low speed affair and none of the drivers were injured, but it meant that only four cars were still running!.

The race finished on lap 75 out of 78 due to the two hour rule and Olivier Panis scored his first ever GP win, Ligier's ninth ever win (their first since Jacques Laffite won at Canada in 1981). David Coulthard was second, Johnny Herbert third and Heinz Harald Frentzen fourth. Mika Salo was classified fifth and Mika Hakkinen sixth.

Provisional Results. Awaiting confirmation.