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In the two weeks that had passed since the Spanish Grand Prix Niki Lauda had recovered from his rib injury. The overall teams were unchanged at the Monaco Grand Prix with a few exceptions. Renzo Zorzi was dropped by Shadow over a dispute on sponsorship and was replaced by Riccardo Patrese. Stanley BRM was a no show and McLaren was running the old M23 cars again

John Watson had taken pole position in his Brabham followed by Jody Scheckter. Carlos Reutemann and Ronnie Peterson followed next in the qualifying positions. Regazzoni dropped out of the race since he had problems with his car and so he left to qualify for the Indy 500. Jacky Ickx took Regazzoni's place and qualified on Saturday. Ian Scheckter crashed his car and damaged his ribs so he failed to qualify. All four of the cars from the March team failed to qualify for the Monaco Grand Prix.

At the start of the Monaco Grand Prix Jody Scheckter moved in front of Watson to take the lead with Reutemann behind the two. Jody Scheckter held his place for the entire race and Watson held his second place until the forty-fifth lap when his gearbox failed. Lauda ended up taking the second place followed by Reutemann. Jody Scheckter gave team Wolf its second win in its first season in the World Championship. This occasion also marked the one-hundredth time a Ford-Cosworth DFV engine won a World Championship event. It was almost exactly ten years since Jim Clark first won in his Lotus.