Prior to the IRL's inaugural season in 1996, Treadway secured former Indianapolis 500 champion Arie Luyendyk as his lead driver. Long-time IndyCar sponsors Bryant Heating and Cooling Systems and Jonathan Byrd's Cafeteria were brought on as backers. The team announced itself quickly: Luyendyk delivered the team's first victory in only their second race together, winning the Dura-Lube 200 at Phoenix International Raceway. At the Indianapolis 500 that year, Luyendyk set two qualifying records that remained standing as track records as of 2024 — a four-lap average of 236.986 mph and a single-lap best of 237.498 mph. Despite the speed, Luyendyk was knocked out of the race in an accident.
The 1997 season brought the team its defining moment. Luyendyk won the 1997 Indianapolis 500 for Treadway Racing from pole position, with new teammate Scott Goodyear finishing second to give the team a 1-2 sweep at the Speedway. Luyendyk followed up by winning the True Value 500 at Texas Motor Speedway a fortnight later — a race better remembered for the scoring controversy that ultimately led to USAC being removed from its sanctioning duties by the IRL. Goodyear's more consistent results across the season placed him one position ahead of Luyendyk in the final standings despite not winning a race.
Goodyear departed for 1998, leaving Luyendyk as sole driver. He won the final race of the season at Las Vegas Motor Speedway before stepping back from full-time competition. Sam Schmidt was signed to replace Luyendyk for 1999 and delivered a win at Las Vegas, matching the prior year's result at the same venue. Combined with a fifth-place finish in the final season standings, the team entered the 2000 season with strong expectations.
Those expectations were shattered by a devastating pre-season testing accident at Walt Disney World Speedway that left Schmidt paralyzed. Robby McGehee, who had been signed to partner Schmidt, became the team's sole driver and completed just one season. Felipe Giaffone drove for the team in 2001 with personal sponsorship from Hollywood Cigarettes, and Ross and Diana Hubbard joined as team partners that year; neither the driver nor the partnership continued beyond the season.
For 2002, Fred Treadway's son Rick Treadway drove for the team for the first half of the season, with Will Langhorne competing in select events at the season's end. As CART teams began entering the IRL, rising costs squeezed independent operations and Treadway Racing's final race was the 2002 Chevy 500 at Texas Motor Speedway.
Treadway Racing's 1997 Indianapolis 500 victory stands as the team's signature achievement — a 1-2 finish at the Speedway that represented the IRL's early promise of accessible, competitive racing for independent teams. The careers of several drivers who passed through the team were marked by tragedy or hardship: Sam Schmidt's accident ended his racing career and left him paralyzed, while the team itself could not survive the economics of a professionalizing series. The team's story reflects the broader arc of independent outfits in the IRL's first decade.