Germany had not had a top Formula 1 racer for over 15 years and so there were huge crowds at Hockenheim to watch Michael Schumacher in action. After less than a year in F1 he was highly-competitive but with the Williams-Renault domination in the summer of 1992 there was little chance that he would win in Germany. The field was as it had been in Britain and so was the grid with the order being Nigel Mansell and Riccardo Patrese followed by the two McLaren-Hondas of Ayrton Senna and Gerhard Berger. Schumacher was sixth behind Jean Alési's Ferrari. The top 10 was completed by the two Ligier-Renaults of Érik Comas and Thierry Boutsen, Martin Brundle's Benetton and Karl Wendlinger's March-Ilmor. Ivan Capelli was again off the pace in the second Ferrari, qualifying 12th behind Johnny Herbert's Lotus.

Patrese made the best start but as they braked for the first chicane Mansell took the lead and began to pull away. Patrese settled down for a lonely run to second place. Thus it was that the top teams ran in sequence: the two Williams-Renaults followed by McLaren (Senna-Berger), Benetton (Schumacher-Brundle), Ferrari (Alési and the fast-starting Capelli), Ligier (Comas-Boutsen) and Lotus (Häkkinen-Herbert). While most of the cars pitted Senna decided to run non-stop and he was ahead when the Williams-Renaults stopped. Berger was dropped from contention with a slow stop and then a misfire.

Mansell chased after Senna and in his eagerness to get in the lead again ran over the second part of the Ostkurve chicane and had the momentum to pass Senna before the third chicane. Schumacher had also decided to run without a stop and so he was third with Patrese fourth followed by non-stoppers Brundle, Alési and Comas. Capelli and the Lotus drivers had all retired with engine troubles.

Schumacher held off Patrese but eventually had to give way although he regained the place on the last lap when Patrese spun off while challenging Senna for second place. He was classified eighth. Brundle was fourth with Alési fifth and Comas sixth.

Mansell's eighth win in 10 races equalled Senna's record for the most wins in a season and the Englishman needed only one more victory to clinch the World Championship as he had more than double the points of his nearest challenger.