The land was purchased in 1926 by a real estate company associated with British entrepreneur Louis Romero Sanson, which originally intended to develop a residential district. Following difficulties partly related to the 1929 stock market crash, the decision was made to build a racing circuit on the site instead. Construction began in 1938 and the circuit opened on 12 May 1940 as a dirt track, hosting the third Grand Prix of the City of São Paulo, which was won by Nascimento Junior driving an Alfa Romeo. The surface was paved with asphalt in the late 1940s, transforming it into a permanent facility. In its original form the circuit measured 7.960 kilometres. A speed oval link road was added in 1957. The circuit closed at the end of 1967 for renovation and reopened on 1 March 1970.
The circuit's first Formula One World Championship race took place on 11 February 1973, with Emerson Fittipaldi winning the Brazilian Grand Prix from pole position held by Ronnie Peterson. Fittipaldi won again in 1974 from his own pole. In 1975 Carlos Pace, the circuit's eventual namesake, took victory from pole position held by Jean-Pierre Jarier's Shadow. Niki Lauda won from James Hunt's pole in 1976; Carlos Reutemann won from Hunt's pole in 1977; Jacques Laffite swept pole, race, and fastest lap in 1979; and René Arnoux won the final race on the long layout in January 1980 — a race that had nearly been cancelled following complaints about the worsening surface from drivers including defending world champion Jody Scheckter. The circuit was subsequently renamed the Autódromo José Carlos Pace in 1985 in honour of the driver who had won there in 1975 and died in a plane crash.
Safety and surface concerns prompted Formula One to relocate to the Jacarepaguá circuit in Rio de Janeiro from 1981. The last race on the original long layout was the January 1980 event.
After Jacarepaguá's tenure ended, Interlagos was shortened to 4.325 kilometres at a cost of fifteen million dollars and returned to the F1 calendar on 25 March 1990, when Alain Prost won from Ayrton Senna's pole. The circuit has remained a fixture since then. The current length is 4.309 kilometres. Mika Häkkinen won three successive Brazilian Grands Prix between 1998 and 1999, and Michael Schumacher won four times on the shortened layout across his career. A new F1 hosting contract signed in November 2023 extends the São Paulo Grand Prix's place on the calendar through 2030; the race was renamed the São Paulo Grand Prix from 2021.
Ayrton Senna's victories at his home circuit — in 1991 and 1993 — were among the most emotionally charged moments in Formula One history. The 1991 win in particular, driving a McLaren with a stuck sixth gear for the final laps and crossing the finish line in tears, remains one of the sport's most celebrated images. The 2007 Brazilian Grand Prix was decided on the final lap: Kimi Räikkönen won the race and the world championship as Felipe Massa also won but title leader Lewis Hamilton dropped points to hand Räikkönen the title. The 2008 race again went to the final lap, with Massa winning and Hamilton snatching the championship with a last-corner overtake on Timo Glock. In 2016 the race ran in extraordinary conditions after a red flag and Safety Car period for heavy rain stretched the event to three hours. Kevin Magnussen took a surprise pole position for Haas in 2022 before George Russell took race victory.
The circuit's hilly terrain produces significant elevation change across the lap, taxing both engines and brakes and contributing to its reputation as one of the most physically demanding circuits on the F1 calendar. Weather is highly variable, with sudden heavy rain a regular feature of race weekends. Night lighting using 21 towers, each nine metres high and each rated at 140,000 lumens, was installed in 2018 to make the venue suitable for evening sessions. A major refurbishment of the pit complex and facilities was completed between 2014 and 2015.
Beyond Formula One, the circuit regularly hosts Stock Car Brasil, Copa Truck, and SuperBike Brasil, making it one of the busiest permanent racing venues in South America.
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