Practice: Superchargers are allowed and engine capacity is unlimited. This year's 'Monaco' starts the Grand Prix season. Fifty drivers enter of which twenty-three are given a start position.
The Bugatti 'Works' team of Chiron, Williams and Bouriat are out and out favourites, driving the 8 cylinder, Bugatti 35.
The other favourites are Baron Vittorio Jano in a Maserati 26B, Count Arco in a Mercedes SSK and Hans Stuck driving an Austro-Daimler. Rudi Caracciola is refused entrance by the race officials, who find his Mercedes SSK to be unsafe.
The organisers also prevent the Englishman, Bowes, from racing because they feel his Fraser Nash is too slow. Fourteen cars take part in practice.
Enzo Ferrari has to retire in his Alfa Romeo. Chiron, driving literally in his own backyard, clocks The next day's practice takes place in torrential rain. Chiron manages 2'23", René Dreyfus 2'24" and Williams 2'31". The Maseratis are held up at the customs in Menton, on the French/Italian border and miss the practice altogether. Pari-Mutuel betting is introduced at this race and bets can be placed up until the 40th lap. Betting booths are placed all around the circuit and a percentage of the money taken goes to the drivers. 100,000 spectators arrive in Monaco for the race.

Race

The sun was present when Charles Faroux started this second GP at 13.00 h precise with the Monaco flag.
Chiron immediately took the lead followed by Bouriat and Williams. Williams comes through first on the quays, but Chiron retakes the lead on the starting line. Count Arco hits the curb and abandons. Chiron sets the infernal rhythm very high at 2’13.

Borzacchini’s Maserati gives up and his co-pilot Archangelli stops picks him up and deposits him at his hotel on the circuit and continues the race. Bouriano who’s engine had stopped in a manoeuvre at the Ste-Devote finally restarts but in lap 14 he skids in the chicane and abandons. So does the Talbot of Biondetti.
  Dreyfus gradually moved to 7th place in lap 10 and by lap 15 he had reached 3rd position. At lap 30 Chiron in the lead is followed by Dreyfus at a distance. Chiron smells the danger and steps up the lap time saving.
This fierce battle up front continued till lap 80, with Chiron setting a new lap record of 2’09”. In lap 83 Chiron went into the pits to refuel, change sparkplug's and adjust the clutch, while Dreyfus opened the faucet of his specially installed second tank and gained on Chiron. Chiron is off again but his engine was a bit overheated and his Bugatti does not respond.
Dreyfus could smell the exhaust fumes of Chiron as he was closing in.
Then Chiron had some trouble in the hairpin, his accelerator was sticking, seeing Dreyfus closing in he untied his helmet and flung it away. Then Dreyfus went past and was gaining second by second.
Because Dreyfus did not have any pit stop he had not been able to clean his goggles, which had pretty cogged up.
Dreyfus won the race in his private Bugatti, setting a new record of 2’07”.  And received the prize from the hands of Prince Louis II. With bandaged hands from 3 1/2 hours of pulling and tearing at the wheel  he received 300.000 F prize money from his sponsors.