The 1976 season had been defined by Niki Lauda's near-fatal accident at the Nurburgring in August, which left him with severe burns and lung damage. Despite missing two races while he recovered, Lauda returned to competition with remarkable speed and still led the championship heading into the final round at Fuji. Lauda held a three-point advantage over James Hunt, meaning Hunt needed to outscore him by at least four points to take the title. Ferrari had already clinched the Constructors' Championship before the Japanese round.
For the race, Noritake Takahara rented the second Surtees entry replacing Brett Lunger, and Masami Kuwashima took the second Wolf-Williams seat but was himself replaced by Hans Binder during the meeting after his funding fell through. Maki resurrected its Formula One car for Tony Trimmer, and Heros Racing entered an old Tyrrell for Kazuyoshi Hoshino on Bridgestone tyres — marking the Japanese manufacturer's first Formula One start. Kojima Engineering ran a locally built chassis for Masahiro Hasemi on Dunlop tyres.
Mario Andretti took pole position in the Lotus 77, with Hunt alongside him on the front row. Lauda qualified third. John Watson in the Penske, Jody Scheckter, Carlos Pace, Clay Regazzoni, and Vittorio Brambilla followed. Ronnie Peterson and Hasemi completed the top ten. Trimmer failed to qualify the Maki.
Race day brought severe weather — heavy rain, fog, and standing water at multiple points around Fuji Speedway. Debate among drivers and organisers over whether the race should proceed ended with a decision to start. A majority of drivers accepted the verdict, though several, including Lauda, were deeply unhappy.
Hunt led from the start, with John Watson and Andretti behind him. On lap two, Watson slid off into an escape road. On the same lap, Lauda brought his Ferrari into the pits and withdrew. He later explained that the conditions made the risk unjustifiable and that his life was worth more than the championship. Larry Perkins also retired after one lap on safety grounds, and Carlos Pace and Emerson Fittipaldi followed him into the pits later in the race.
Hunt continued to lead through the opening phase. Brambilla challenged for the lead on lap 22 before spinning and eventually retiring with electrical problems on lap 37. Jochen Mass moved into second before crashing on lap 36 near turn 7, elevating Patrick Depailler to second and Andretti to third.
As the track dried the dynamic shifted dramatically. Hunt, who needed only fourth place given Lauda's retirement, began losing ground. On lap 62 he dropped behind both Depailler and Andretti. Two laps later Depailler suffered a deflating left rear tyre and had to pit. Then Hunt himself developed a tyre problem, pitted, and fell to fifth place. He rejoined behind Depailler, Alan Jones, and Clay Regazzoni. Over the final laps he repassed all three to reclaim third, crossing the line behind race winner Andretti and Depailler.
The immediate unofficial classification placed Hunt fifth, causing a brief period of confusion in the Hunt camp. Official results confirmed him third — enough to win the championship by one point over Lauda.
Mario Andretti's victory was his second Formula One win, coming five years, seven months, and eighteen days after his maiden victory at the 1971 South African Grand Prix — as of 2024 the longest gap between a first and second victory in Formula One history.
The race represented the Formula One debuts of Hans Binder, Noritake Takahara, Masami Kuwashima, Masahiro Hasemi, and Kazuyoshi Hoshino, all making their championship starts. Kojima became the first Japanese constructor to compete in the Formula One World Championship. The race also recorded the first fastest lap for the Ligier team, though there was subsequent controversy over the fastest lap attribution: it was initially credited to Masahiro Hasemi but later corrected to Jacques Laffite following a press release from the circuit — a correction well publicised in Japan but largely overlooked in international record books, where Hasemi is still frequently listed.
Hunt won the Drivers' Championship with 69 points to Lauda's 68. Ferrari retained the Constructors' title. The margin of one point remained the second-closest in championship history at the time, and the season — stretching from Lauda's fiery accident in Germany to his deliberate withdrawal in Japan — became one of the defining narratives of Formula One's 1970s era.