Larson was born in Elk Grove, California. His mother is Japanese American, and her parents spent time in a Japanese internment camp. He began racing at age seven in outlaw karts in Northern California and progressed to open-wheel cars as a teenager, competing in USAC midget, Silver Crown, and sprint car events for Keith Kunz Motorsports and Hoffman Racing with Toyota backing. A series official gave Larson the nickname "Yung Money" in recognition of his early talent.
In 2011 Larson won the 4-Crown Nationals at Eldora Speedway, becoming only the second driver in history to win in all three USAC car types in a single night. He also raced World of Outlaws sprint cars, recording his first sprint car win at Placerville Speedway as one of the youngest competitors ever to do so there.
Earnhardt Ganassi Racing signed Larson for their driver development program in 2012. He won the 2012 NASCAR K&N Pro Series East championship and was named that series' Rookie of the Year. Larson advanced to the NASCAR Nationwide Series in 2013 with Turner Scott Motorsports, winning the Nationwide Series Rookie of the Year award — becoming the first Asian-American and first Drive for Diversity participant to earn that distinction in one of NASCAR's national touring series.
In 2014 Larson joined Chip Ganassi Racing full-time in the NASCAR Sprint Cup Series, earning the Sprint Cup Series Rookie of the Year award with eight top-fives and 17 top-tens. He scored his first Cup Series win at Michigan in 2016.
During six seasons with CGR, Larson developed into one of the Cup Series' most consistent performers. He scored multiple wins in 2017 — his best season with the team — including three straight Michigan victories and four wins overall, reaching the Round of 12 in the playoffs before an engine failure at Kansas ended his championship run. He made the playoffs in four consecutive years from 2016 through 2019.
In April 2020, during the COVID-19 pandemic, Larson used a racial slur during an iRacing event. Chip Ganassi Racing suspended him without pay and NASCAR issued an indefinite suspension. Multiple corporate sponsors including McDonald's, Credit One Bank, and Chevrolet terminated their agreements. Larson was fired by CGR the following day. He underwent sensitivity training and community engagement work, including travel to Minnesota following George Floyd's death. NASCAR reinstated Larson's competition privileges effective January 1, 2021.
On October 28, 2020, Hendrick Motorsports signed Larson to drive the No. 5 Chevrolet beginning with the 2021 season. The contract included a provision allowing Larson to continue dirt racing, provided the Cup program remained his primary commitment.
Larson's 2021 season was historically dominant. He won ten races, including the Coca-Cola 600 — which was also Hendrick Motorsports' 269th all-time Cup victory, surpassing Petty Enterprises for the most in NASCAR history — plus a road course win at Sonoma, three consecutive wins spanning Kansas and Texas, and nine wins total during the regular season and playoffs. In the Championship 4 at Phoenix, he led 107 laps to clinch his first NASCAR Cup Series championship, becoming the first driver since Jimmie Johnson in 2007 to win ten races and the title in the same season.
In 2025, despite winning only two points races in the regular season, Larson made the Championship 4 and won his second Cup title at Phoenix after recovering from a lap-down deficit following a late caution.
Throughout his NASCAR career, Larson maintained an unusually active dirt-racing schedule. He is a five-time Chili Bowl Nationals winner (2020, 2021, and 2025 as highlights), a three-time Knoxville Nationals winner (2021, 2023, 2024), and a winner of the Kings Royal. He set a sub-ten-second qualifying lap at Federated Auto Parts Raceway during the 2021 season — the first sub-ten-second lap in that track's history. He also owned Kyle Larson Racing, which fielded a World of Outlaws team for Carson Macedo before closing after the 2020 season.
In 2024 Larson attempted to run both the Indianapolis 500 for Arrow McLaren and the Coca-Cola 600 for Hendrick Motorsports on the same day — the double — but a rain delay to the Indy 500 caused him to miss the start of the Coke 600. He was named the 2024 Indianapolis 500 Rookie of the Year after finishing 18th. He returned to the 2025 Indianapolis 500 but crashed out on lap 91.
Larson is widely considered one of the most complete racing drivers of his generation, capable of competing at the highest level across paved and dirt surfaces in multiple disciplines simultaneously. His 2021 championship season — ten wins, 18 stage wins, and a 9.1 average finish — stands as one of the most dominant in modern NASCAR history. He was named one of NASCAR's 75 Greatest Drivers in 2023. His path back from the 2020 suspension, combined with his on-track achievements, made his career arc one of the more consequential in the sport's recent history.