The 1997 European Grand Prix (formally the XLII European Grand Prix) was a Formula One motor race held on 26 October 1997 at the Circuito Permanente de Jerez, Spain. Originally scheduled as the Portuguese Grand Prix at the Estoril circuit, it was moved when Estoril's management had financial difficulties. It was the 17th and final race of the 1997 FIA Formula One World Championship. The 69-lap race was won by Mika Häkkinen in a McLaren, his first Formula One race victory. His teammate David Coulthard finished second and Williams driver Jacques Villeneuve took third, which was sufficient for him to win the World Championship.

Michael Schumacher, driving for Ferrari, had led the championship by a single point ahead of Villeneuve going into the race. During the race, Villeneuve and Schumacher collided while battling for the lead and the resulting damage to Schumacher's car forced him to retire. The blame for the incident was later attributed to Schumacher by the sport's governing body, the FIA, and he was stripped of his second-place finish in the championship. Schumacher's tactics were widely criticised by the media, including publications based in his home country of Germany, and in Ferrari's home country of Italy.

Following the race, Williams and McLaren were accused of colluding to decide the finishing order. Villeneuve stated that "it was better to let them through and win the World Championship". The FIA determined there was no evidence to support the claims, and dismissed the accusations. This is the last World Championship Grand Prix to be held in Jerez and the last season finale to be held on the European continent to date. Häkkinen's victory was the first victory for a Finnish driver in the Formula One World Championship in 12 years since Keke Rosberg won the 1985 Australian Grand Prix.

Häkkinen and Coulthard's first and second-place finishes ensured the McLaren team scored their first one-two finish since the 1991 Japanese Grand Prix and made the Woking based team the only team to score a 1-2 finish during any of the 1997 Grands Prix. This was the last race for Gerhard Berger, who had won 10 times and had been competing in Formula One since 1984, and Ukyo Katayama. This was also the last Grand Prix until the 2009 Australian Grand Prix where slick tyres were used, as grooved tyres would be used in the sport from the start of the 1998 season until the end of the 2008 season. This race was also the only time during the 1997 season that Villeneuve stood on the podium without being the race winner, the other seven of eight podiums Villeneuve achieved that season all being wins.

The 1997 European Grand Prix was the final round of the 1997 Formula One World Championship and occurred at the 4.428 km (2.751 mi) Circuito de Jerez on 26 October 1997. Originally scheduled as the Portuguese Grand Prix at the Estoril Circuit, the race was moved to the Jerez Circuit when Estoril's management had financial difficulties. The race was added to the schedule after Japan because engine suppliers Renault did not want their last Formula One race to be in Japan.

Heading into the final race of the season, two drivers were still in contention for the World Drivers' Championship, despite Ferrari driver Michael Schumacher driving the inferior car, perhaps not even the second-fastest car on the grid. Schumacher was leading with 78 points; Williams driver Jacques Villeneuve was second with 77 points, one point behind Schumacher. Behind Schumacher and Villeneuve in the Drivers' Championship, Heinz-Harald Frentzen was third on 41 points in the other Williams, with Jean Alesi and David Coulthard on 36 and 30 points, respectively. Villeneuve had won two more races than Schumacher during the season, meaning that in the event of a tie on points, the rules stated Villeneuve would be world champion.

Villeneuve had to finish the race in a points-scoring position (points were awarded for drivers finishing in sixth place or higher) and ahead of Schumacher to become World Drivers' Champion. Schumacher would be world champion if he finished ahead of Villeneuve, or if Villeneuve failed to score any points by finishing lower than sixth or not completing the race. In the World Constructors' Championship, Williams led with 118 points and Ferrari were second on 100. Williams had therefore clinched the constructors' title before the race, as even if Ferrari finished first and second in the race, thereby taking 16 points, and both Williams cars failed to score a point, they could not beat Williams.

Following the Japanese Grand Prix on 12 October, the teams conducted testing sessions at various locations around the world. Williams, Benetton, Sauber, Jordan and McLaren conducted at a test session at the Silverstone Circuit. Williams, Sauber and Jordan tested using 1998-spec cars, in preparation for the 1998 season. Arrows conducted testing at the Circuit de Nevers Magny-Cours circuit, performing wet weather tyre development with tyre suppliers Bridgestone with the circuit flooded to simulate wet weather conditions. Prost conducted testing at Circuit de Catalunya and performed tyre testing for Bridgestone, as well as testing their 1998-specification car. Ferrari remained at the Suzuka Circuit testing an electronic differential used by driver Eddie Irvine at the previous race.