The 1916 Grand Prix season saw Grand Prix motor racing continue in the United States. Racing was suspended in Europe due to the World War I engulfing the continent. Once again European cars dominated Indianapolis with victory going to Briton Dario Resta in a Peugeot. With the organisers wanting to appeal to the spectators, this was the only year that the race was scheduled for a shorter length – to run only 300 miles. The Vanderbilt Cup and the American Grand Prize returned to Santa Monica, California, at the end of the year. Resta repeated his victory from the year before, winning the Vanderbilt Cup. Then when he retired in the Grand Prize it was Howdy Wilcox and Johnny Aitken who won in another of the dominant Peugeots. Oval courses now dominated the AAA Championship with these two events being the only road-course races this year. It proved to be the final time these two formative American races were held in this format; while racing in America continued throughout the First World War, public interest had shifted away from road racing.
With five victories across the season, the AAA national championship was won by Dario Resta.