The accidents at Imola two weeks earlier cast a shadow over the Monaco Grand Prix. The tragic events, which included the deaths of Roland Ratzenberger and the great Ayrton Senna, resulted in a mass-media hysteria which had made the whole sport edgy and things went from bad to worse on Thursday morning when Karl Wendlinger had a serious accident at the chicane, sliding sideways into the barriers at high speed. He suffered head injuries which meant that he would not be able to compete for the rest of the season. The Sauber-Mercedes team went back to Switzerland. In the mid-afternoon the FIA president Max Mosley turned F1 on its head by announcing sweeping rule changes.

On Saturday afternoon Michael Schumacher and Mika Häkkinen fought for pole. Schumacher and his Benetton won the battle with Häkkinen second in his McLaren-Peugeot and then Gerhard Berger's Ferrari. Damon Hill in the only Williams-Renault was fourth (out of respect for Senna, Williams did not field a second driver). The returning Jean Alési was fifth fastest ahead of the Arrows-Fords of Christian Fittipaldi and Gianni Morbidelli. The top 10 was rounded off by a disappointing Martin Brundle (McLaren), Pierluigi Martini in his Minardi and Mark Blundell in his Tyrrell.

Schumacher made his customary good start, pulling clear of any danger from Häkkinen. Behind these two Hill had made a good start and got ahead of Berger. As they went into Ste Devote Damon went for a gap to Häkkinen's left. The Williams ended up in the wall and Häkkinen's McLaren did likewise. This left Michael Schumacher a long way clear of the field. Michael would not be headed for the rest of the afternoon. Berger ran second, pulling clear of Alési and Fittipaldi. Brundle pitted early and when the other frontrunners stopped Martin was able to get up to third.

There was some excitement in the mid-race when Mark Blundell spread oil at Ste Devote. Schumacher slid and nearly hit the barrier while Berger spun off. This put Brundle second and he was not planning to stop again. Unfortunately he was forced to pit when rubbish got into his radiators and his engine temperatures went off the clock. The stop dropped him to third behind Berger. When Gerhard and Michael stopped again Martin moved to second.

A lap down Andrea de Cesaris (standing in for Eddie Irvine at Jordan) moved into fourth and was able to control an exhausted Alési while Michele Alboreto was sixth for Minardi.