The principality's first Grand Prix was organised in 1929 by Antony Noghès, under the auspices of Prince Louis II, through the Automobile Club de Monaco (ACM). The ACM had applied to the international governing body of motorsport for elevation from a regional French club to full national status, but the application was refused for lack of a major event held wholly within Monaco's boundaries. To satisfy the requirement, Noghès proposed a street circuit Grand Prix in Monte Carlo, gaining the support of Monégasque driver Louis Chiron, who believed Monaco's topography was well-suited to a race track.
The inaugural race, held on 14 April 1929, was won by William Grover-Williams driving under the pseudonym "Williams" in a works Bugatti Type 35B. Another competitor, the Baron Philippe de Rothschild, also raced under a pseudonym. Rudolf Caracciola drove a Mercedes-Benz SSK from fifteenth on the grid to second place, despite losing time to refuelling and a tyre change. Chiron himself could not compete, having a prior commitment at the Indianapolis 500.
The race grew quickly in prestige. In 1933 it was formally recognised as an International Grand Prix alongside the French, Belgian, Italian, and Spanish Grands Prix, and that year's race was the first in which grid positions were determined by practice times rather than by ballot. Louis Chiron won in 1931, becoming for many decades the only Monégasque to win his home race. The event joined the European Championship in 1936. The race was not held in 1938 due to financial difficulties, nor in 1939 and beyond due to the Second World War.
Racing in Europe resumed in September 1945, but the Monaco Grand Prix did not return immediately due to financial reasons. A Monaco Grand Prix was run in 1948 under post-war Grand Prix regulations, won by future world champion Nino Farina in a Maserati 4CLT. The event was included in the inaugural Formula One World Drivers' Championship in 1950, where it provided Juan Manuel Fangio with his first World Championship victory. The 51-year-old Louis Chiron finished third, his best result in the World Championship era.
No race was held in 1951, 1953, or 1954 for various administrative and financial reasons. The race returned in 1955 and would subsequently be held for 64 consecutive years until the 2020 cancellation due to the COVID-19 pandemic.
Graham Hill of Britain won the race five times during the 1960s, earning the nickname "Mr. Monaco" and "King of Monaco." He first won in 1963 and then claimed victory in 1964 and 1965. In the 1965 race, Hill took pole and led from the start, went down an escape road on lap 25 to avoid a backmarker, rejoined in fifth, and still won after setting several new lap records. He won again in 1968 and 1969, the latter being his final Formula One championship victory.
Between 1984 and 1993, the race was won by only two drivers: Frenchman Alain Prost and Brazilian Ayrton Senna. The 1984 race is remembered for being controversially stopped in wet conditions on lap 31, with Senna closing rapidly on Prost in his Toleman. Senna went on to win the race six times in total, including five consecutive victories from 1989 to 1993, setting the record for most Monaco wins. His sixth victory in 1993 broke Graham Hill's record of five wins. Runner-up Damon Hill commented at the time: "If my father was around now, he would be the first to congratulate Ayrton." Senna's 1987 win was also the first Formula One victory for a car equipped with active suspension.
The Circuit de Monaco traverses the narrow streets of Monte Carlo and La Condamine alongside Port Hercule. It features significant elevation changes, tight corners, and a tunnel that creates a unique visual challenge as drivers brake for the chicane after emerging into daylight at the track's fastest point. The circuit is largely unchanged since 1929 and is widely regarded as the ultimate test of driving skill and mental strength. Nelson Piquet famously described racing at Monaco as "like riding a bicycle around your living room," adding that "a win here was worth two anywhere else." Only minor changes have been made throughout the circuit's history: Armco barriers were introduced from 1969, the pit area was relocated in 1972, the Swimming Pool chicane complex was added in 1973, and the Nouvelle Chicane was added in 1986 by expanding into the nearby water.
As of 2025, two drivers have crashed into the harbour during the race — Alberto Ascari in 1955 and Paul Hawkins in 1965. The circuit is the only Formula One venue to have hosted every race since its first Grand Prix.
The 1982 race is one of the most chaotic in Monaco's history. Alain Prost led until four laps from the end, spun off and lost a wheel, then Riccardo Patrese spun, then Didier Pironi ran out of fuel in the tunnel, then Andrea de Cesaris also ran out of fuel. Patrese bump-started his stalled car and drove through to claim his first Grand Prix victory.
The 1996 race saw Damon Hill take the lead after championship leader Michael Schumacher crashed on the opening lap. Hill led 40 laps before his engine failed. Jean Alesi then led before suffering suspension failure. Olivier Panis, who started fourteenth, inherited the lead and held it to the flag for his only Formula One victory and the final win for the Ligier team.
The 2006 race brought controversy when Michael Schumacher, then provisionally on pole position with qualifying nearly over, stopped his Ferrari at the Rascasse hairpin, blocking the track. The FIA ruled the move deliberate and sent Schumacher to the back of the grid.
In 2024, Charles Leclerc became the second Monégasque winner of the race, following Louis Chiron's 1931 victory. The race was the first in Formula One history in which the top ten cars finished in their exact starting order, with no successful overtakes recorded.
The race was twice designated the European Grand Prix, in 1955 and 1963. It was cancelled in 2020 due to the COVID-19 pandemic, the first cancellation since 1954. From 2022, the opening practice sessions moved from Thursday to Friday to align with the standard Formula One schedule. From 2026, the race will be held on the first weekend of June, ending the longstanding scheduling clash with the Indianapolis 500 and the Coca-Cola 600 on Memorial Day weekend.
In November 2024, the ACM signed a contract extension to keep the race on the Formula One calendar until at least 2031, with a further extension to 2035 confirmed in September 2025. As part of the agreement, the ACM relinquished advertising and television production rights to Formula One Management.
The Monaco Grand Prix is organised by the Automobile Club de Monaco, which also runs the Monte Carlo Rally. For many years, the race had a smaller permitted grid than other Formula One events, as the ACM set the entry numbers at around 16 cars, arguing the narrow circuit made larger grids impractical. This was a recurring point of tension with Bernie Ecclestone and the Formula One Constructors Association during the 1970s.
Until 2017 there was no formal podium structure at Monaco. Instead, a section of the track was closed after the race as parc fermé, and the top three drivers walked directly to the royal box for the ceremony, with trophies presented before the national anthems — the reverse of normal Grand Prix procedure. The erection of the circuit takes six weeks, and dismantling after the race takes three weeks.
The Monaco Grand Prix has been characterised by the FIA as contributing "an exceptional location of glamour and prestige" to motorsport. Three generations of Monaco's royal family — Louis II, Rainier III, and Albert II — have served as patrons of the race. Monaco's tax status has made it home to numerous Formula One drivers over the decades, including Gilles Villeneuve and Ayrton Senna. As of 2025, Graham Hill remains the only driver to have won all three races of the Triple Crown.