With Vanwall having proved themselves to be competitive with victory at the British GP, there was much excitement as the Grand Prix teams gathered at the Nürburgring with Lancia Ferrari and Maserati keen to get their revenge. The field was as normal with Lancia Ferrari fielding Mike Hawthorn, Peter Collins and Luigi Musso and Maserati running Juan Manuel Fangio, Jean Behra and Harry Schell in their leading cars. The field was bolstered by Formula 2 machinery which included a trio of Porsches and various Cooper-Climaxes.

Pole position went to Fangio with Hawthorn, Behra and Collins completing the front row. Then came Brooks, Schell and Moss. At the start Hawthorn and Collins went into a battle for the lead with Fangio and Behra giving chase. On the third lap Fangio passed Collins and was soon able to take the lead. Collins then passed Hawthorn and chased after Fangio but the Argentine driver edging gradually away. A slow mid-race pit stop dropped Fangio behind the two Lancia Ferraris but he chased back hard, in one of the greatest drives in F1 history, and passed both Collins and Hawthorn on the penultimate lap. Fangio thus won his fifth World title.