The original layout measured 3.404 km and was characterised by a short main straight followed by an intricate sequence of tight, technical corners offering almost no opportunity for overtaking. The circuit's sinuous nature made it brutally demanding of driver skill and set up, while the narrow track width caused controversy as Formula One cars grew wider and more aerodynamically complex through the 1970s. The combination of low average speeds and high mechanical load placed heavy demands on brakes and tyres across all disciplines that visited.
Jarama made its Formula One debut with the 1968 Spanish Grand Prix and returned to host the race in 1970, 1972, 1974, and annually from 1976 to 1979, before its final Formula One appearance in 1981. The 1981 Spanish Grand Prix produced one of the most celebrated defensive drives in the championship's history. Gilles Villeneuve, in his turbocharged Ferrari 126CK, held the lead throughout a lengthy closing sequence despite being followed by four cars — Jacques Laffite in the Ligier-Matra, John Watson in the McLaren, Carlos Reutemann in the Williams, and Elio de Angelis in the Lotus — each of which was considered faster in terms of outright pace. Villeneuve's turbocharged Ferrari had superior straight-line speed but lacked the ground-effect aerodynamic efficiency of his pursuers through the corners, yet he kept the pack behind him for lap after lap to claim victory. It proved to be the final win of his career. After 1981, Formula One organisers deemed the circuit too narrow to safely accommodate the growing dimensions of modern cars, and the Spanish Grand Prix moved away from Jarama permanently.
The circuit hosted the Spanish motorcycle Grand Prix 15 times between 1969 and 1988, making it a fixture of the FIM Grand Prix season across two decades. Additional motorcycle rounds were hosted under varying titles — the Portuguese, Madrid, and European motorcycle Grands Prix appeared at different points across the circuit's history. The sidecar world championship also featured at Jarama in 1981 and 1991, while the Superbike World Championship visited in 1991 and 1992.
Jarama held a significant place in European touring car racing. The European Touring Car Championship appeared at the circuit on multiple occasions between 1968 and 2002, and in 1987 the circuit hosted Round 2 of the inaugural World Touring Car Championship for Group A cars. That race, the 1987 Jarama 4 Hours, was won by Roberto Ravaglia and Emanuele Pirro in a Schnitzer Motorsport BMW M3. Pole position was taken by Klaus Ludwig, a three-time Le Mans winner, in a Ford Sierra RS Cosworth turbo with a time of 1:31.434; the fastest lap was set by Andy Rouse, also in a Sierra Cosworth, with a time of 1:33.710. Sports car racing has appeared in various forms across the circuit's history, including rounds of the World Sportscar Championship, the BPR Global GT Series, the FIA GT Championship, the Le Mans Series, and the International Sports Racing Series.
The circuit was lengthened in 1991, altering the original 1967 configuration. A further upgrade was carried out in 2015. Since February 2022, the facility has operated under the name Circuito de Madrid Jarama — RACE. In its current form it hosts Formula E, TCR Spain, drifting events, truck racing, and historic events such as the Jarama Classic, among others.
The original Jarama layout occupies an important place in the history of Grand Prix racing. Its unforgiving, narrow character produced defining moments — none more so than Villeneuve's 1981 victory — that illustrated how driver craft and raw courage could overcome outright technical disadvantage. The circuit's long association with both four-wheeled and two-wheeled world championships made it a cornerstone of Spanish motorsport through the sport's most transformative decades.