The green flag came nearly half an hour earlier than planned, due to the impending rain showers which officials feared would lead to the race having to be completed on another day. Jeff Green was out in front at the start of the race, but he was quickly passed by Michael Waltrip who led the first 34 laps. On lap 42, the race's first caution came out after Bobby Labonte spun out entering the backstretch. Dale Earnhardt, Jr. took the lead from Tony Stewart as the field raced back to the caution. The first round of green flag pit stops came on lap 50. The most significant incident of the race came on lap 58: Ryan Newman was running solidly in the Top 15, but defending Daytona 500 championWard Burton hit Ken Schrader and both he and Newman hit the wall. The rear tire fixture underneath Newman's car detached from the car as he went sliding into the infield grass, and the No.12 went airborne and when it landed, its right-rear wheel dug into the dirt, causing Newman to flip several times before landing on its roof. Most of the car came apart in the infield, but Newman was uninjured and was able to walk away from the crash under his own power. Following Newman's flip, there were six caution laps, during which a light rain began to fall, so the race was red-flagged when the rain became heavier. Following a rain delay which lasted over an hour, the race restarted with Michael Waltrip back in front. The race remained under the green flag until lap 95, when Jeff Green and Jimmy Spencer collided entering turn 4, bringing out a third caution. Spencer ended up hitting the frontstretch retaining wall and coming to rest just past the start-finish line. Spencer had a very similar crash in the 2000 race. A caution came on lap 103 for debris, and then Ward Burton hit the turn 4 wall on lap 106, bringing out another. There were three yellow flag laps after Burton's crash, and the race was once red-flagged again due to more rain. Although it briefly looked as if the race would get back underway, the race was eventually called off due to the forecast of more rain and Michael Waltrip was declared as the winner. It was his third career Winston Cup win both overall and at Daytona, and his second career Daytona 500 win. Coincidentally, Waltrip's first three wins came in the first three Daytona races broadcast by Fox. This was the third Daytona 500 to have been shortened by rain, following the races held in 1965 and 1966. At 272.5 miles and 109 lap, this race was also the shortest Daytona 500 ever.
