The 2002 running brought a notable influx of CART-based teams competing at the Speedway for the first time in years. Penske Racing had defected fully to the IRL for the season, while Chip Ganassi Racing, Team Green, and Rahal Letterman Racing crossed organizational lines to enter the race. Bruno Junqueira set a searing 231.342 mph pole speed — the fastest since 1996 — and led the opening 32 laps before stalling in the pits. May was plagued by near-constant rain, with six of ten practice days disrupted by weather, though race day itself was sunny and warm.
Rookie Tomas Scheckter emerged as an unlikely leader and led 85 laps during the first half, appearing on course to become the third consecutive first-year winner. On lap 173, Scheckter slid into the wall on the frontstretch while holding an eight-second advantage, ending his challenge. The lead rotated among Gil de Ferran, Alex Barron, and Felipe Giaffone during the ensuing pit cycle. Castroneves gambled by staying out and took the front, while from fourth place Paul Tracy charged forward at a remarkable pace.
With two laps remaining, Tracy drew alongside Castroneves in turn three. At that precise moment a separate accident involving Laurent Redon and Buddy Lazier occurred in turn two. A yellow flag was displayed, and race control — led by Brian Barnhart — ruled that Castroneves was still the leader at the moment of the caution. Tracy, who believed he had completed the pass cleanly under green, proclaimed over his radio "Yeah baby!" before his team informed him there was "a problem."
Official results, posted five hours after the race, placed Castroneves first and Tracy second. Team Green filed an immediate protest. After a two-hour hearing on May 27, IRL officials upheld Castroneves' win. Team Green appealed in writing on June 3, and a formal appeals hearing presided over by Speedway President Tony George took place on June 17. On July 2, 2002, George issued an 18-page decision affirming the original result, concluding that Castroneves was indisputably ahead at the last scoring antenna before the caution and at the moment Barnhart called the yellow.
The decision split the motorsport community largely along IRL and CART partisan lines. Robin Miller openly declared Tracy the "unofficial 2002 Indy winner," and merchandise asserting the same appeared at CART events. Tracy, angered by the ruling, refused to return to the IRL for several seasons; his dismissal of IRL machinery as "crapwagons" in September 2003 became a lasting catchphrase for those critical of the series. Team Green owner Barry Green sold his stake to Michael Andretti after the season, having spent over $100,000 on legal fees. Andretti renamed the team Andretti Green and moved it full-time to the IndyCar Series in 2003.
Castroneves' victory was his second of an eventual four Indy wins. He was the first repeat winner since Al Unser Sr. in 1970 and 1971. Tracy's second-place finish also narrowly missed setting a record for lowest starting position by a winner — he had begun the race from 29th on the grid.