Formula One, or Grand Prix racing, is the best known single-seater (open-wheel) auto racing class; though it has traditionally been centered in Europe, it is a worldwide sport, and involves an annual World Drivers Championship and World Constructors Championship. Many regard it as the pinnacle of auto racing; it is the most expensive sport in the world, with average annual team budgets in the hundreds of millions of US dollars. It is based around a series of races (18 in 2004), known as grands prix, on custom-constructed road courses or closed-off street circuits. While Europe undoubtedly remains the leading market for the sport, races have also been held in the Americas, Africa, Asia, and Australia. The sport is regulated by the FIA, Federation Internationale de l'Automobile, and is generally promoted and controlled by Bernie Ecclestone.

Historically, the series evolved from pre-war European Grand Prix motor racing of the 1920s and 1930s. With the reestablishment of motor racing post-WWII, the drivers championship was formalised in 1950 and in 1958 a championship for constructors was started. Additional non-championship Formula One races were held around the world, but ended in the early 1980's. Regulations have changed greatly as car technologies have improved, with the appearance of rear-engined cars in the late 1950s, the introduction of wings in the late 1960s, then ground effect aerodynamics in the late 1970s by Lotus, followed by the 1980s era of turbocharged engines developing upwards of 1000 horsepower (750 kW). The 1980s remain the time of the most powerful circuit racing cars of all time.

The late 1980s saw the creeping inclusion of all manner of electronic driver aids to help drivers tame these twitchy beasts, including active suspension, anti-lock brakes, automatic gearboxes, four-wheel steering and traction control. Some of these were borrowed from contemporary road cars, some, like active suspension, were primarily developed for the track and later made their way to the showroom.

In any case, whilst they made the cars faster, fans perceived that the new aids were taking away the need for driver skill and so in 1989 the series changed to naturally-aspirated engines and removed many of the driver aids. Some, like traction control, launch control and automatic gearboxes have gradually returned (at the Spanish GP in 2001) due in part to rumours that teams were evading the restrictions.

Since 1984, the championship has been dominated by just three teams, McLaren, Williams, and Ferrari, who have provided the vehicle for all but two of the World Champions for that period.