Heading into the Japanese race, Niki Lauda led James Hunt by just three points in the drivers' standings. The deficit was remarkable given that Lauda had suffered near-fatal burns in a crash at the Nürburgring in August, missing two races during his recovery. Hunt had closed the gap through victories in the intervening rounds. Ferrari also held an eleven-point lead over McLaren in the constructors' championship. Everything would be decided at Fuji.
Mario Andretti set the fastest qualifying time in his Lotus-Ford with a lap of 1:12.77. James Hunt lined up second on the grid at 1:12.80, while Lauda qualified third at 1:13.08. John Watson (Penske-Ford) and Jody Scheckter (Tyrrell-Ford) completed the top five.
Race day brought very wet and misty conditions at Fuji Speedway, with persistent rain making the circuit treacherous. After two laps, Niki Lauda pulled into the pits and withdrew from the race. Lauda, who had nearly died just weeks earlier, stated that his life was worth more than a championship title. The decision left Hunt needing to finish fourth or better to take the title.
Hunt ran in contention throughout but faced tire problems late in the race. Around lap 62 to 64, he and Patrick Depailler both made pit stops for fresh rubber, dropping positions. Hunt rejoined in fifth place and charged back through the order in the closing laps.
Mario Andretti led from the front to take a dominant victory, his first Formula One win since the 1971 South African Grand Prix — a gap of five years, seven months, and eighteen days. Patrick Depailler (Tyrrell-Ford) finished second, with Hunt crossing the line third. Alan Jones (Surtees-Ford) took fourth, and Clay Regazzoni (Ferrari) fifth. Depailler, Jones, and Hunt all finished one lap down on Andretti.
Hunt's third place was enough. The final standings placed Hunt on 69 points to Lauda's 68, with the title decided by the narrowest margin in eight years. Ferrari secured the constructors' championship with 83 points to McLaren's 74.
The race marked the Formula One debuts of several Japanese drivers: Noritake Takahara, Masami Kuwashima, Masahiro Hasemi, and Kazuyoshi Hoshino. Hans Binder made his F1 debut for Austria. Japanese constructor Kojima Engineering entered Formula One for the first time. Bridgestone competed in its first Formula One race as a tire supplier. Jacques Laffite recorded Ligier's first fastest lap credit, setting a time of 1:19.97 on lap 70.
The 1976 season, and its final round at Fuji, became one of the defining stories in Formula One mythology. Lauda's decision to withdraw — rational, human, and deeply controversial in equal measure — and Hunt's last-lap charge to secure the title by one point produced a narrative that endured long after the season ended. The race marked the end of an era defined by Lauda and Hunt's contrasting approaches to danger and competition, and cemented both drivers' reputations far beyond their championship tallies.