Hamilton, who had never lost a race on the Monte Carlo track (having won there in both GP2 and F3) played down his chances of winning the race, although he still remained "realistic" and optimistic, looking to fight for a win as is "the case with everything (he) competes in."
Qualifying was dominated throughout by the two McLarens of Hamilton and Fernando Alonso. Despite Hamilton setting fastest times for the first session, Alonso outpaced him in the final stages to take pole position, with Hamilton being held up slightly by Mark Webber. Felipe Massa of Ferrari qualified third fastest, posting a time after the clock stopped. Kimi Räikkönen made a mistake and hit the barriers coming out of the Swimming Pool Complex during the second qualifying stage, breaking his right steering arm. The damage inflicted could not be repaired and he qualified sixteenth. Despite provisionally making the top ten, David Coulthard was penalised for impeding Heikki Kovalainen and demoted to thirteenth. Coulthard's demotion allowed Jenson Button to participate in the final qualifying stage, but he failed to move up the field and finished the qualifying session in 10th place.
Of those whose qualifying went well, former Monaco resident Giancarlo Fisichella fared best, putting his Renault on the second row in fourth place. Nico Rosberg's performance marked a return to form for his Williams team; his fifth place was the British constructor's best qualifying position since Mark Webber's second place at the same track one year before in 2006. Webber himself also fared well, filling the second slot on row three, alongside Rosberg, in sixth place.
No other car in the field could keep up with the sheer pace of both of the Mclaren-Mercedes, with Massa, after a competitive first stint in third place, dropping to sixty seconds behind Hamilton. Notably, he was the only car the two McLaren drivers did not lap during the afternoon.
Kimi Räikkönen came back up the field to eighth place to gain one championship point after his poor qualifying performance.
Vitantonio Liuzzi crashed out of the race on the second lap, a fate that befell Spyker driver Adrian Sutil in the second half of the Grand Prix. The other Spyker car, driven by Christijan Albers failed to finish the race due to a mechanical problem. The only other retirement was Mark Webber, whose Red Bull's gearbox failed in the early stages of the race.
| Pos | Name | Constructor | Part 1 | Part 2 | Part 3 |
|---|---|---|---|---|---|
| 1 | Fernando Alonso | McLaren-Mercedes | 1:16.059 | 1:15.431 | 1:15.726 |
| 2 | Lewis Hamilton | McLaren-Mercedes | 1:15.685 | 1:15.479 | 1:15.905 |
| 3 | Felipe Massa | Ferrari | 1:16.786 | 1:16.034 | 1:15.967 |
| 4 | Giancarlo Fisichella | Renault | 1:17.596 | 1:16.054 | 1:16.285 |
| 5 | Nico Rosberg | Williams-Toyota | 1:16.870 | 1:16.100 | 1:16.439 |
| 6 | Mark Webber | Red Bull-Renault | 1:17.816 | 1:16.420 | 1:16.784 |
| 7 | Nick Heidfeld | BMW Sauber | 1:17.385 | 1:15.733 | 1:16.832 |
| 8 | Robert Kubica | BMW Sauber | 1:17.584 | 1:15.576 | 1:16.955 |
| 9 | Rubens Barrichello | Honda | 1:17.244 | 1:16.454 | 1:17.498 |
| 10 | Jenson Button | Honda | 1:17.297 | 1:16.457* | 1:17.939 |
| 11 | Alexander Wurz | Williams-Toyota | 1:17.874 | 1:16.662 | |
| 12 | Vitantonio Liuzzi | Toro Rosso-Ferrari | 1:16.720 | 1:16.703 | |
| 13 | David Coulthard | Red Bull-Renault | 1:17.204 | 1:16.319* | |
| 14 | Jarno Trulli | Toyota | 1:17.686 | 1:16.988 | |
| 15 | Heikki Kovalainen | Renault | 1:17.836 | 1:17.125 | |
| 16 | Kimi Räikkönen | Ferrari | 1:16.251 | no time | |
| 17 | Anthony Davidson | Super Aguri-Honda | 1:18.250 | ||
| 18 | Scott Speed | Toro Rosso-Ferrari | 1:18.390 | ||
| 19 | Adrian Sutil | Spyker-Ferrari | 1:18.418 | ||
| 20 | Ralf Schumacher | Toyota | 1:18.539 | ||
| 21 | Takuma Sato | Super Aguri-Honda | 1:18.554 | ||
| 22 | Christijan Albers | Spyker-Ferrari | no time | ||