The 80th Indianapolis 500 was held at the Indianapolis Motor Speedway in Speedway, Indiana on Sunday, May 26, 1996. This was the first Indy 500 contested as part of the new Indy Racing League, under the overall sanctioning umbrella of USAC. It was the third and final race of the 1996 IRL season. Veteran driver and former AIS champion Buddy Lazier won the race, his first career victory in top-level Indy car competition. Lazier's victory came just over two months after he suffered a broken back in a crash at Phoenix.

Championship Auto Racing Teams (CART) was a sanctioning body for American open-wheel car racing that operated from 1979 until dissolving after the 2003 season. CART was founded in 1979 by United States Auto Club (USAC) Championship Division team owners who disagreed with the direction and leadership of USAC, with the then-novel idea of team owners sanctioning and promoting their own series collectively instead of relying on a neutral body to do so. Through the 1980s, CART's Indy Car World Series became the pre-eminent open-wheel auto racing series in North America, featuring street circuits, road courses, and oval track racing. CART teams continued to compete at the USAC-sanctioned Indianapolis 500, which was effectively integrated into the series schedule.