After the successful Canadian GP at Mosport Park the previous year, the event was given a date in the 1968 calendar but the race was moved to the exciting Mont-Tremblant circuit at St Jovite, in Quebec. With the final three races being held in the Americas traveling was also reduced. Attention now centered on the battle for the World Championship with Graham Hill still ahead after his early season successes with 30 points by Jacky Ickx with 27, Jackie Stewart with 26 and Denny Hulme with 24. Lotus ran a third car for Canadian star Bill Brack, while Dan Gurney ran in a third McLaren (having given up with his Eagle-Weslake program). An old Eagle appeared in the hands of local driver Al Pease while BRM ran only one car for Pedro Rodríguez. Matra Sports expanded to a two-car operation Jean-Pierre Beltoise being joined by Henri Pescarolo and with Jackie Stewart running alongside Johnny Servoz-Gavin in the Matra International entries, there were four Matras in the field.

In qualifying Ickx's hopes of the World title ended when he crashed after his throttle stuck open. He suffered a broken leg.

Jochen Rindt took pole position for Brabham - the new Repco engine finally beginning to work - with Chris Amon's Ferrari and Jo Siffert's Rob Walker Lotus alongside on the front row. Gurney did well to qualify on the second row alongside Hill, while the third row featured Hulme (McLaren), John Surtees (Honda) and Bruce McLaren (McLaren).

At the start Amon took the lead with Siffert chasing him. Then came Rindt, Gurney and Hill. The order at the front remained stable with Surtees dropping out early from eighth place. On lap 14 Hill managed to pass Gurney and 12 laps later Gurney dropped away with a broken radiator. On lap 29 Siffert disappeared with an oil leak and so Rindt was second but he retired soon afterwards with an engine failure which promoted Hill to second place. That too was short-lived as Hill soon dropped behind Hulme and McLaren because of a serious vibration problem. Hill gradually fell back and was overtaken by Rodríguez and Servoz-Gavin. A few laps later the Frenchman spun out and so Hill moved back to fourth.

Amon seemed to have everything under control until the 73rd lap when his transmission failed. This gave McLaren a 1-2 victory with Rodríguez grabbing third for BRM. The result put Hulme and Hill on equal points in the World Championship with two races to go.