The 47th International 500-Mile Sweepstakes was held at the Indianapolis Motor Speedway in Speedway, Indiana on Thursday, May 30, 1963. Rufus Parnelli Jones took his only Indy 500 win. This win was controversial because his car spewed oil from a cracked overflow tank for many laps, which allegedly caused at least one driver to spin and crash. USAC officials put off black-flagging Jones after car owner J. C. Agajanian ran down pit lane and convinced them that the oil leak was below the level of a known crack and would not leak any further. Lotus owner Colin Chapman, whose English-built, rear-engined Lotus-Ford finished second in the hands of Scotsman Jim Clark, accused USAC officials of being biased in favor of the American driver and car.

Rufus Parnell "Parnelli" Jones is an American former professional racing driver and racing team owner. He is notable for his accomplishments while competing in the Indianapolis 500 and the Baja 1000 desert race, and the Trans-Am Championship series. In 1962, he became the first driver to qualify over 150 mph. He won the race in 1963, then famously broke down while leading the 1967 race with three laps to go in a turbine car. During his career as an owner, he won the Indy 500 in 1970–1971 with driver Al Unser.