Postlethwaite and Gascoyne's design for 1995 incorporated a novel hydraulic front suspension system called "Hydrolink," which the team had been testing since February of that year. The intent was to improve mechanical grip and aerodynamic consistency by electronically controlling the suspension geometry, but in practice the system proved troublesome and was removed from the car mid-season after failing to deliver the expected performance gains.
The car used a 3-litre version of the Yamaha V10 engine — the regulations having reduced the maximum displacement from 3.5 litres — which had been raced in 3.5-litre form the previous year. Tyrrell retained its 1994 sponsor roster including Mild Seven, BP, Fondmetal, Calbee, Club Angle and Zent, and added Nokia backing worth $3 million brought by new signing Mika Salo.
Salo was the team's standout performer throughout the season. At the opening Brazilian Grand Prix, he held third place before spinning back to seventh due to cramp — a result that suggested real potential the car ultimately could not consistently deliver. He was also denied points at the next race when backmarker Aguri Suzuki collected him. Salo had to wait until the second half of the season before scoring, eventually taking fifth place at both the Italian and Australian Grands Prix — the 023's best finishes.
Katayama, by contrast, struggled throughout the year. As a shorter driver, he was disadvantaged by the taller cockpit sides mandated by the 1995 regulations. He was outpaced by his less experienced team-mate and later revealed after his 1997 retirement that he had been suffering from a cancerous growth on his back, a condition that was not life-threatening but had a measurable effect on his physical performance. Katayama was injured in a startline accident at Estoril, and Italian test driver Gabriele Tarquini substituted at the European Grand Prix at the Nürburgring.
Tyrrell finished ninth in the Constructors' Championship with five points, behind Footwork, whose Gianni Morbidelli had scored three points with a third-place finish at Adelaide.
The 023 ran in dark blue for the first two races of the season. From the San Marino Grand Prix onwards the livery was updated to a lighter blue upper surface with white lower bodywork. Korean Air was added as a sponsor for the remainder of the season. At events prohibiting tobacco advertising, the Mild Seven logos were replaced with "Tyrrell" lettering.
The 023 marked a low point in Tyrrell's mid-1990s trajectory. The failed Hydrolink experiment consumed development resources without yielding performance, and the season underlined that the team lacked the budget and infrastructure to compete with better-funded outfits. Salo's performances nonetheless drew wider attention, and he went on to drive for better-resourced teams in subsequent seasons. For Tyrrell, the 023 was followed by the 024 as the team worked toward a sale that would eventually see the operation absorbed into British American Racing ahead of the 1999 season.