Born in Tokyo, Sato began karting in Japan at the age of nineteen. After winning the national karting title in 1997, he moved to Europe with backing from Honda. He briefly raced in Vauxhall Junior and Formula Opel before debuting in Class B of the British Formula 3 Championship mid-way through 1999 with Diamond Racing, taking class wins at the British Grand Prix and Spa. He moved to the top class with Carlin Motorsport in 2000, taking four wins and third place in the championship. In 2001, he won twelve out of 26 races to take a dominant championship win — the first for a Japanese driver in the British series. He also won the Macau Grand Prix and the Masters of Formula 3 in 2001.
Sato graduated to Formula One in 2002 with the Honda-powered Jordan team, paired with Giancarlo Fisichella. He suffered a heavy crash in Austria when Nick Heidfeld lost control of his Sauber under braking and struck the side of Sato's car. He repaid the team's faith with a strong drive to fifth at his home Grand Prix at Suzuka.
With Honda focusing solely on British American Racing for 2003, Sato joined the Brackley-based outfit as a test driver. He replaced Jacques Villeneuve at the final round in Japan, scoring sixth place after a battle with Michael Schumacher, and was signed to race full-time in 2004. During the 2004 season, Sato qualified four times in the top three, including a front row start and an overall lap record at the European Grand Prix. At the United States Grand Prix, after the team did not pit under safety car conditions, Sato fought back with daring overtaking moves to score his only Formula One podium — the first podium for a Japanese driver since Aguri Suzuki at the 1990 Japanese Grand Prix. He scored points in nine of the eleven races he completed to finish eighth in the championship with 34 points, the best-ever result for a Japanese driver in Formula One at the time. His efforts helped BAR-Honda finish second in the Constructors' Championship. Both drivers were disqualified from the 2005 San Marino Grand Prix and the team banned from the two subsequent races for running cars that were underweight when all fuel was removed; Sato's season never recovered, and he ended it with eighth place at the Hungarian Grand Prix as his only points finish.
Sato joined the new Super Aguri F1 team for 2006, run by Japanese former driver Aguri Suzuki. The outfit ran the first half of the season with a modified version of a 2002 Arrows A23 chassis before introducing the SA06 at the German Grand Prix. For 2007, Super Aguri ran a reworked version of the Honda RA106 chassis. Sato made it through to Q3 at the Australian Grand Prix, scored the team's first point at the Spanish Grand Prix, and finished sixth at the Canadian Grand Prix after passing Kimi Räikkönen's Ferrari and then Fernando Alonso's McLaren-Mercedes on lap 67; the latter overtake won him the "Overtake of the Year" award from F1 Racing magazine. Financial problems forced Super Aguri to withdraw from Formula One after the 2008 Spanish Grand Prix. In late 2008, Sato tested at Jerez with Scuderia Toro Rosso for a vacant race seat, setting the fastest time on 17 November — three tenths ahead of Sébastien Buemi — but the seat was given to Sébastien Bourdais.
Sato visited the Indianapolis 500 in May 2009. He signed with KV Racing Technology for the 2010 IndyCar Series season, finishing 21st, and returned in 2011, scoring three top-five finishes and two pole positions to finish thirteenth.
At the 2012 Indianapolis 500, driving for Rahal Letterman Lanigan Racing, Sato chased Dario Franchitti to the finish and made a move for the lead at the first turn of the final lap, earning the respect of Indianapolis 500 fans for the attempt.
For 2013, Sato joined A. J. Foyt Enterprises in the No. 14 car vacated by Mike Conway. In the third race of the season at Long Beach, in his 52nd IndyCar start, Sato scored his first IndyCar win, becoming the first Japanese driver to win an IndyCar race. He scored six top-five finishes that season, including two podiums and two pole positions, before leaving the team at the end of 2016.
Sato joined Andretti Autosport for 2017 and won the Indianapolis 500, becoming the first Asian driver to win the race. He also won poles at the Dual in Detroit on Belle Isle and at Pocono Raceway in August.
Sato rejoined Rahal Letterman Lanigan Racing for 2018 in the No. 30 car alongside Graham Rahal. He recorded a top-three finish at Iowa and held off Ryan Hunter-Reay for victory at Portland after starting 20th — his third career IndyCar win and first on a permanent road course. In 2019, he won the season's third race at Barber Motorsports Park from pole position and later won at Gateway. On 23 August 2020, qualifying on the outside of the front row for the 104th running of the Indianapolis 500, Sato won the race for a second time.
Sato signed with Dale Coyne Racing with Rick Ware Racing for 2022, replacing Romain Grosjean, and finished 25th at the Indianapolis 500. For 2023, he joined Chip Ganassi Racing for oval rounds only — the first time since 2010 he was without a full-time IndyCar seat. On 18 March 2024, Rahal Letterman Lanigan Racing announced Sato would rejoin for an Indianapolis 500-only drive; he finished fourteenth after making the Fast 12 round of qualifying. Sato returned to RLL for the 2025 Indianapolis 500, qualifying second — the middle of the front row — and led 51 laps, the most of the field. An overshoot of his pit box on lap 86 cost critical time; he finished eleventh on track and was later promoted to ninth following the disqualifications of Andretti drivers Marcus Ericsson and Kyle Kirkwood.
In September 2014, Sato raced for his former Formula One team Amlin Aguri in the inaugural Formula E race, the 2014 Beijing ePrix, replacing regular driver Antonio Félix da Costa. He set the fastest lap of the race — 1:45.101 — but retired with mechanical issues, scoring two points. That single appearance left him with a 100% fastest lap record in the series, the only driver to hold such a mark.
On 14 June 2012, Team Mugen announced Sato would race in the last three rounds of the 2012 Formula Nippon season. He also raced with Team Mugen in the opening round of the 2013 Super Formula season and returned later that year, scoring his first points with an eighth-place finish in the season finale.
Sato is widely known for his aggressive driving style and motto "No Attack, No Chance." In 2024, he was inducted into the Long Beach Motorsports Walk of Fame. His son Rintaro Sato made his racing debut in the 2024 F4 Japanese Championship. Sato resides in Carmel, Indiana during the racing season.
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