The 2017 event was the third and final year of competition using manufacturer-specific aerodynamic kits on the Dallara DW12 chassis; beginning in 2018, the series adopted a universal bodywork kit. Chip Ganassi Racing had switched engine suppliers from Chevrolet to Honda over the winter, while A. J. Foyt Enterprises moved in the opposite direction. Team Penske signed Josef Newgarden from Ed Carpenter Racing.
Scott Dixon, the 2008 Indianapolis 500 winner, won the pole position with a four-lap average of 232.164 mph, the fastest pole since Arie Luyendyk's record in 1996. His opening lap of 232.565 mph was also the quickest single lap since Luyendyk's 1996 benchmark. Dixon's run placed the pole among the three fastest in Indianapolis 500 history.
The month was marred by the qualifying crash of Sebastien Bourdais, who had been among the fastest cars on Fast Friday. On the first qualifying day, after completing his two fastest laps of the session at over 231 mph, Bourdais lost control in Turn 2 and struck the SAFER Barrier nearly head-on, suffering multiple pelvic fractures and a hip fracture. He was unable to compete in the race. Dale Coyne Racing brought in James Davison as a replacement.
Fernando Alonso, two-time Formula One World Champion, was announced as an entrant on April 12. Alonso skipped the 2017 Monaco Grand Prix — held on the same weekend as the Indianapolis 500 — to compete at Indianapolis. His entry attracted global attention; viewership in Spain was higher than the Formula One race that ran simultaneously. Alonso passed his rookie test on May 3, completing 110 laps with a best lap of 222.548 mph.
During the Fast Nine Shootout, Alonso qualified fifth, stunning observers by placing ahead of several full-time IndyCar regulars. In the race he led 27 laps in the opening half and ran competitively through most of the distance. He retired on lap 179 with an engine failure while running seventh. Alonso was voted Rookie of the Year.
On lap 53, Jay Howard drifted wide in Turn 2 after being passed by Ryan Hunter-Reay and struck the wall. Howard's car deflected across the track directly into Dixon's path. Dixon's car was launched off the back of Howard's, became airborne, and flew into the inside wall before falling to the track. The impact ripped the rear assembly nearly completely from the car. Miraculously, both Dixon and Howard were uninjured. Repairs to the catch fencing required an 18-minute red flag.
Alonso led in the opening phase, dueling with teammate Alexander Rossi. Tony Kanaan led early in the second quarter. Helio Castroneves worked his way through the field multiple times using strategy, running off-cycle from the main field. Ryan Hunter-Reay led the second half before his engine failed suddenly on lap 136. Fernando Alonso led briefly in the late stages before his engine failed.
In the fourth quarter, Max Chilton led for an extended period after taking a well-timed pit stop, with Castroneves and Sato moving up behind him. As the race entered its final phase, Sato passed both Castroneves and Chilton to take the lead. With three laps to go, Castroneves attempted to pass Sato but was unable to make the move stick. Sato crossed the finish line 0.2011 seconds ahead of Castroneves, with Ed Jones third. It was also the third victory in four years for the Andretti Autosport team.
Honda suffered multiple engine failures during the race; the manufacturer had experienced seven failures across the month of May including the IndyCar Grand Prix. Alonso's retirement was the third Honda engine failure in the race itself.
Takuma Sato, 40 years old at the time of his win, became the first driver from Asia to win the Indianapolis 500. Sato had previously finished third at the 2004 United States Grand Prix held on the Indianapolis road course, making him the first driver to win the Indianapolis 500 and finish on the podium at a US Grand Prix at the same venue. The victory was the first of two Indy wins for Sato, who returned to win again in 2020.
James Davison, substituting for the injured Bourdais, led a lap in the closing stages — becoming the first driver since Alex Tagliani in 2016 to lead laps after starting last. A lap-184 incident involving Davison, Oriol Servià, Will Power, James Hinchcliffe, and Josef Newgarden eliminated four of the five drivers.
The 2017 race was also notable for a post-qualifying incident unrelated to racing: on the night following qualifying, pole-winner Scott Dixon and former driver Dario Franchitti were robbed at gunpoint at a fast-food restaurant near the track. Neither was injured.