The event returned to the calendar following a 14-year absence caused by the retirement of Carlos Reutemann and the 1982 invasion of the Falkland Islands. Its reinstatement followed the rise to power of President Carlos Menem in 1989 and a subsequent modernization of the Autódromo Oscar Alfredo Gálvez. For the 1995 event, the No. 6 configuration of the circuit was utilized. To commemorate the return of the Grand Prix, Reutemann performed a demonstration lap in a 1994 Ferrari 412 T1 on the Thursday preceding the race.
The circuit faced criticism from participants due to the "dirtiness" of the track surface. In technical developments leading up to the race, the FIA rescinded a regulation that had previously required holes to be cut into car airboxes, resulting in all teams arriving with filled airboxes.
A special familiarization session was held on Thursday to allow drivers to learn the new No. 6 configuration. Qualifying took place across two one-hour sessions on Friday and Saturday, both of which were affected by wet weather and numerous spins. Conditions only improved toward the conclusion of the Saturday session.
David Coulthard secured the first pole position of his Formula One career with a time of 1:53.241. His Williams teammate Damon Hill qualified second, 0.8 seconds behind, while Michael Schumacher qualified third. The top ten was completed by Eddie Irvine, Mika Häkkinen, Jean Alesi, Mika Salo, Gerhard Berger, Heinz-Harald Frentzen, and Rubens Barrichello. The Simtek team achieved notable qualifying results, with Jos Verstappen placing 14th and Domenico Schiattarella 20th.
The race began in dry conditions with President Menem in attendance. At the first start, Jean Alesi spun on the inside of the first corner, triggering a multi-car accident. Mika Salo braked to avoid Alesi and was struck from behind by Luca Badoer, forcing Salo into Johnny Herbert. The chain reaction involved Rubens Barrichello, Ukyo Katayama, Olivier Panis, and Pierluigi Martini. The race was red-flagged. While most involved drivers switched to spare cars for the restart, Badoer was unable to continue as his teammate took the only available Minardi spare.
On the second formation lap, Karl Wendlinger stalled and was moved to the back of the grid. At the restart, another collision occurred when Mika Häkkinen made contact with Eddie Irvine’s front wing; Häkkinen retired immediately while Wendlinger collided with both Pacific team cars, ending the race for all three. Irvine retired on lap 7 due to engine failure.
David Coulthard led the early stages until lap 6, when a throttle failure allowed Schumacher and Hill to pass him. Hill overtook Schumacher for the lead on lap 11. Although Coulthard briefly regained the lead during the first round of pit stops, his throttle failed permanently shortly thereafter, forcing his retirement. Jean Alesi led for eight laps during the pit cycle before Hill resumed the lead.
In the midfield, Jos Verstappen reached sixth place for Simtek before a long pit stop and a lap 24 gearbox failure ended his race. Mika Salo was running fifth when he collided with Aguri Suzuki on lap 48. Following the incident, Salo confronted Suzuki in the pit lane and stated to the BBC that "drivers like Suzuki should not be in Formula One."
Damon Hill maintained his lead for the remainder of the event, finishing 6.4 seconds ahead of Alesi. Michael Schumacher, who recorded the fastest lap of the race on lap 55, finished third, 27 seconds behind Alesi. Johnny Herbert finished fourth, followed by Heinz-Harald Frentzen in fifth and Gerhard Berger in sixth. Domenico Schiattarella finished ninth, equaling the best-ever result for the Simtek team.
Immediately following the race, Gerhard Berger held the lead of the Drivers' Championship. However, four days later, the FIA International Court of Appeal overturned the disqualifications of Schumacher and Coulthard from the preceding Brazilian Grand Prix. This ruling adjusted the standings, placing Schumacher in the championship lead by four points over Hill, while Berger dropped to fifth. In response to driver complaints regarding the track surface, the Autódromo Oscar Alfredo Gálvez was resurfaced during the winter of 1995–96.
| Pos | No | Driver | Constructor | Time | Gap | | :--- | :--- | :--- | :--- | :--- | :--- | | 1 | 6 | David Coulthard | Williams-Renault | 1:53.241 | — | | 2 | 5 | Damon Hill | Williams-Renault | 1:54.057 | +0.816 | | 3 | 1 | Michael Schumacher | Benetton-Renault | 1:54.272 | +1.031 | | 4 | 15 | Eddie Irvine | Jordan-Peugeot | 1:54.381 | +1.140 | | 5 | 8 | Mika Häkkinen | McLaren-Mercedes | 1:54.529 | +1.288 | | 6 | 27 | Jean Alesi | Ferrari | 1:54.637 | +1.396 | | 7 | 4 | Mika Salo | Tyrrell-Yamaha | 1:54.757 | +1.516 | | 8 | 28 | Gerhard Berger | Ferrari | 1:55.215 | +1.974 | | 9 | 30 | Heinz-Harald Frentzen | Sauber-Ford | 1:55.683 | +2.442 | | 10 | 14 | Rubens Barrichello | Jordan-Peugeot | 1:56.103 | +2.862 |
| Pos | No | Driver | Constructor | Laps | Time/Retired | | :--- | :--- | :--- | :--- | :--- | :--- | | 1 | 5 | Damon Hill | Williams-Renault | 72 | 1:53:14.532 | | 2 | 27 | Jean Alesi | Ferrari | 72 | +6.407 | | 3 | 1 | Michael Schumacher | Benetton-Renault | 72 | +33.376 | | 4 | 2 | Johnny Herbert | Benetton-Renault | 71 | +1 Lap | | 5 | 30 | Heinz-Harald Frentzen | Sauber-Ford | 70 | +2 Laps | | 6 | 28 | Gerhard Berger | Ferrari | 70 | +2 Laps | | 7 | 26 | Olivier Panis | Ligier-Mugen-Honda | 70 | +2 Laps | | 8 | 3 | Ukyo Katayama | Tyrrell-Yamaha | 69 | +3 Laps | | 9 | 11 | Domenico Schiattarella | Simtek-Ford | 68 | +4 Laps | | Ret | 4 | Mika Salo | Tyrrell-Yamaha | 47 | Collision | | Ret | 6 | David Coulthard | Williams-Renault | 16 | Electrical | | Ret | 15 | Eddie Irvine | Jordan-Peugeot | 6 | Engine | | Ret | 8 | Mika Häkkinen | McLaren-Mercedes | 0 | Collision |