An initial shakedown was conducted at Aragon in late February 2016, with the car covering over 22,000 km in testing before its public unveiling. The switch from the TS040's capacitor-based hybrid energy storage to a lithium-ion battery system placed the TS050 in the 8-megajoule class. Suspension followed a double wishbone arrangement with pushrod-actuated internal components and torsion bars, similar in concept to the TS040. The nose was raised compared to the TS040 — a feature shared with rivals the Audi R18 and Porsche 919 Hybrid — creating a large opening beneath the nose to tune airflow. Drivers who tested the TS050 include Sam Bird, Thomas Laurent, Pipo Derani, Kenta Yamashita, Nyck de Vries, and Yannick Dalmas.
For 2017, the car underwent a substantial redesign; only the monocoque was carried over. The nose was raised slightly and an undercut added to the sidepods; the coolers were relocated and the rear suspension layout modified. The engine block, head, and combustion chamber were reworked to achieve a higher compression ratio and improved thermal efficiency. The hybrid system's motor-generator units were made smaller and lighter, and the lithium-ion battery pack was modified. Toyota conducted 30,000 km of pre-season testing across five sessions at various circuits, four of which were 30-hour endurance tests. New regulations for 2017 raised the front splitter by 15 mm, narrowed the rear diffuser, and limited aerodynamic configurations to two.
Toyota started the season with a second-place finish at Silverstone and showed strong pace at Spa-Francorchamps before engine trouble hit both cars, later attributed to the forces through the Eau Rouge corner. At the 2016 24 Hours of Le Mans, the TS050s qualified third and fourth behind the two Porsche 919 Hybrids. The lead #5 Toyota held a 1:14 gap over the second-placed #2 Porsche with 6:30 remaining. A sudden severe loss of power on acceleration allowed the Porsche to close rapidly; with 4:30 left the gap had fallen to 37.580 seconds. Toyota elected to keep the car on track rather than pit. With 3:25 remaining, driver Kazuki Nakajima stopped the car just after the finish line as power gave out entirely; the #2 Porsche passed to claim victory. The #5 Toyota completed its final lap in 11:53.815, exceeding the allowed maximum of six minutes, and was not classified in the results.
Toyota entered three cars at Le Mans for the first time since 2012. The third car was driven by Stéphane Sarrazin, Super Formula champion Yuji Kunimoto, and Nicolas Lapierre. During qualifying, Kamui Kobayashi set a lap time of 3:14.791 — the fastest at the Circuit de la Sarthe since chicanes were added to the Mulsanne Straight in 1990. In the race, the No. 8 car finished eighth overall; the No. 9 retired with a puncture and the No. 7 with an MGU failure.
Toyota entered the 2018–19 season as the sole LMP1 team with hybrid entries. After a one-two victory at the 6 Hours of Spa-Francorchamps, they became the second Japanese manufacturer to win the 24 Hours of Le Mans — after Mazda in 1991 with the Mazda 787B — scoring a 1–2 finish. Toyota was later disqualified at Silverstone after originally finishing 1–2, then secured further 1–2 finishes at Fuji and Shanghai. In 2019, Toyota dominated by finishing 1–2 at Sebring and at the 24 Hours of Le Mans, also winning at Spa to clinch the LMP1 World Endurance Championship; the #8 crew secured the Drivers' Championship with their Le Mans win.
For the 2019 half of the Super Season, a harsher Equivalence of Technology (EoT) and a success ballast based on championship points were introduced to allow non-hybrid privateer entries to compete more effectively. Toyota secured pole positions and 1–2 finishes at Silverstone and Fuji, but lost the overall victory at Shanghai to Rebellion, finishing second and third — the first time the TS050 finished behind an internal combustion engine privateer. Toyota recovered at Bahrain to take another 1–2 and the LMP1 World Endurance Championship.
Entering 2020 in the lead of both championships, Toyota found themselves down on pace against Rebellion's R13 due to the success ballast. They missed overall victory at the Lone Star Le Mans, where the R13 led from start to finish, but secured a 1–2 at Spa. At the 2020 24 Hours of Le Mans, Toyota took pole and the #8 won for the third consecutive year. The #7 led early until a turbocharger failure during the night caused a lengthy stop; the car recovered to finish third. This result clinched the LMP1 World Endurance Championship for Toyota. The final race for the TS050 Hybrid was held in Bahrain, where the #7 car took victory; Kamui Kobayashi and teammates Mike Conway and José María López secured the World Endurance LMP Drivers' Championship.
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