The team was established in 1968 by Guy Ligier following his retirement from racing, a decision prompted by the death of his friend Jo Schlesser. Operating as a sports car manufacturer, the company’s first project was the JS1, named using Schlesser's initials. Engineered by Michel Têtu and powered by a Cosworth engine, the JS1 claimed victories at Albi and Montlhéry in 1970.
The lineage continued with the JS2 and JS3 in 1971. The JS2 was a road-homologated vehicle featuring a Maserati V6, while the JS3 was an open-top sports-prototype utilizing a Cosworth DFV V8. Although the JS3 won at Montlhéry, it failed to meet minimum distance requirements at Le Mans. Ligier subsequently focused on the JS2 road car, which achieved a second-place overall finish at the 24 Hours of Le Mans in 1975. Following this result, Guy Ligier transitioned the organization's primary efforts toward Formula One.
Ligier entered Formula One in 1976, filling a three-year void left by the departure of Matra where no French constructor was active in the series. After acquiring the assets of the Matra F1 team, Ligier debuted with a Matra V12-powered car. In 1977, Jacques Laffite drove the team to its first win in Sweden.
The team’s most significant early success arrived in 1979 with the JS11, a Cosworth-powered "wing-car." Laffite won the first two races of the 1979 season, establishing Ligier as a frontrunner. While the team faced increased competition from Williams and Ferrari as the season progressed, the JS11 and its immediate successors maintained Ligier's status as a top-tier team through the early 1980s.
During the early 1980s, the team operated with substantial backing from the French government and public companies, including SEITA, Gitanes, and Française des Jeux. In 1981 and 1982, the team was officially known as Talbot Ligier. Despite this support, competitiveness began to wane by 1982.
In the mid-1980s, political connections between Guy Ligier and French President François Mitterrand secured the team a free supply of Renault turbo engines. This partnership, alongside sponsorship from Loto and Elf Aquitaine, kept the team competitive but short of frontrunner status. When Renault withdrew from the sport in 1986, the team entered a period of instability regarding engine suppliers. An intended collaboration with Alfa Romeo was aborted following public criticism of the engines by driver René Arnoux. This led to a series of customer deals with Megatron, Judd, and Cosworth, followed by works contracts with Lamborghini and Renault.
The team suffered a severe decline between 1987 and 1991, failing to score points in three of those five seasons. A historic low occurred at the 1988 San Marino Grand Prix, where neither René Arnoux nor Stefan Johansson qualified, marking the first time in the team's history that both cars missed the grid.
In 1993, the team experienced a resurgence after Guy Ligier sold the entity to Cyril de Rouvre. Under the technical guidance of Frank Dernie and Loïc Bigois, the team secured eight podiums over the next four years. This period was marked by ownership shifts; in 1994, de Rouvre sold the team to Flavio Briatore and Tom Walkinshaw. During this time, Michael Schumacher tested a Renault-powered Ligier, an event that contributed to Renault moving its engine supply from Ligier to Benetton for the 1995 season.
The team's final victory occurred at the 1996 Monaco Grand Prix. Olivier Panis, driving the Mugen-Honda-powered JS43, won a race of heavy attrition in which only three cars finished. This was the first "all-French" victory at Monaco since 1930 and ended a winless streak of nearly fifteen years.
The Ligier name made its final Formula One appearance at the 1996 Japanese Grand Prix. Although a JS45 chassis was expected for the 1997 season, the team was sold to Alain Prost on February 13, 1997. The organization was subsequently rebranded as Prost Grand Prix.
As of 2025, Équipe Ligier holds the distinction of being the last defunct Formula One team to have scored a Grand Prix victory. The team traditionally utilized the racing numbers 25 and 26 for the majority of its tenure. Its 1996 Monaco win ended the longest winless streak of any uninterruptedly existing team between two victories.
In 2004, the brand returned to motorsport by acquiring Automobiles Martini. This led to the development of the Ligier JS47 for Formula 3, though it saw limited action in the Recaro F3 Cup. In 2005, the company introduced the JS49, a sports prototype designed for the 2000 cc CN class and the V de V Challenge.