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Four races had already taken place in the season's World Championship but the Monaco Grand Prix marked the beginning of the European season. So far Lotus and Ferrari had gone head to head in wins so the season was starting hot. Only twenty starters were allowed at Monaco for the race so a pre-qualifying session took place. Another notable event was Jacky Ickx rejoining Ensign.

Carlos Reutemann qualified his Ferrari fastest for Sunday's Monaco Grand Prix and right next to him were John Watson and last year's champion Niki Lauda. Mario Andretti was fourth fastest and Patrick Depailler fifth. Watson was able to cut in front of Reutemann at the start and Depailler leaped from fifth to second off the grid. At the chicane Lauda and Reutemann tapped each other and Hunt had to swerve to avoid the wall. Both Hunt and Reutemann had to pit for repairs dropping far behind and leaving Lauda to third. On lap thirty-eight Watson went up the escape road and dropped places behind Depailler and Lauda. Andretti later ran into a fuel leak and had to pit moving Scheckter to third place. Soon after Andretti's misfortune came Peterson and Villeneuve with their own problems and both having to retire.

Depailler crossed the line first winning the Monaco Grand Prix, his first World Championship race victory after sixty-nine races. Scheckter came home second behind Depailler and Lauda passed Watson to take third. Watson was fourth place and Pironi fifth.