Prema began competing in the Italian Formula 3 Championship in 1984. Early alumni included Fabrizio Giovanardi, multiple Le Mans winner Rinaldo Capello, and Formula 1 World Champion Jacques Villeneuve. Italian Formula 3 Championship titles followed in 1990 with Roberto Colciago, in 1998 with Donny Crevels, and in 1999 with Peter Sundberg. The team also made a one-season attempt at the International Formula 3000 Championship, and made its first appearance at the Macau Grand Prix in 1988, a competition it would contest for much of the following decades.
In 2000, Prema entered Formula Renault, winning the Formula Renault 2000 Eurocup Team Championship and the Italian Formula Renault 2000 championship with Ryan Briscoe in 2001. A notable later achievement in the Italian series was the 2005 title with Kamui Kobayashi.
Prema entered the Formula 3 Euro Series in 2003 and won the inaugural edition with Briscoe. After a difficult intermediate period the team rebounded to claim the 2011 title with Roberto Mehri and the 2012 title with Daniel Juncadella. Juncadella also gave Prema its first Macau Grand Prix win in 2011. When the series transitioned into the FIA Formula 3 European Championship, Prema won all team titles from 2011 through 2018 and all but one driver championship. Champions who subsequently reached Formula 1 include Esteban Ocon, Lance Stroll, Andrea Kimi Antonelli, and Mick Schumacher.
Between 2006 and 2009, Prema competed in the World Series Formula V8 3.5 championship, achieving a best of fourth in 2008 with Miguel Molina. The team also participated in the short-lived Italian and European Formula Abarth championships during this period.
Alongside the Formula 3 ladder, Prema embraced Formula 4, winning the first two editions of the Italian Formula 4 Championship with Lance Stroll and Ralf Aron.
Prema entered the GP2 Series in 2016 and finished 1–2 on debut with Red Bull Junior driver Pierre Gasly and Antonio Giovinazzi. In 2017, as the series became the FIA Formula 2 Championship, Ferrari Driver Academy's Charles Leclerc claimed seven wins and seven pole positions en route to the title. For 2018, the team fielded Sean Gelael and Nyck de Vries in Formula 2, while FIA Formula 3 European Championship runners included Ferrari Driver Academy members Marcus Armstrong, Robert Shwartzman, and Guanyu Zhou, alongside Mick Schumacher, who won that year's F3 title.
In 2019, Prema's FIA F3 European Champion Mick Schumacher contested Formula 2 alongside Sean Gelael. In the inaugural FIA Formula 3 Championship that year, Robert Shwartzman took the driver title with Marcus Armstrong second and Jehan Daruvala third, all Prema drivers. Shwartzman was promoted to Formula 2 for 2020 alongside Schumacher; Schumacher won the drivers' title, with Shwartzman fourth. The 2020 FIA Formula 3 season saw Oscar Piastri win the drivers' championship with Logan Sargeant third and Frederik Vesti fourth, all representing Prema.
In early 2024, Prema confirmed their entry into the IndyCar Series for the 2025 season, with Chevrolet engines and a two-driver lineup of Callum Ilott and Robert Shwartzman. Shwartzman secured pole position for the 2025 Indianapolis 500, becoming the first rookie to win the pole since the 1983 running of the event. Despite this achievement, the team's continued IndyCar involvement was placed in doubt by media reports in November 2025 centring on financial stability, and the Rosin family departed the team on 14 January 2026. As of 1 February 2026, Prema Racing was not listed as an official IndyCar Series entrant. Stephen Mitas was appointed as new team principal and CEO on 6 February 2026.
Prema made their FIA World Endurance Championship and European Le Mans Series debuts in 2022, marking the beginning of their efforts in endurance racing.
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