1976 saw the debut of a new Lotus Grand Prix car, the Type 77.
Colin Chapman described it as the "fully adjustable car", explaining that its dimensions were variable to suit a range of circuit conditions.

The introduction of the new car also saw the signing of two new drivers, Mario Andretti and Gunner Nilsson who would aim to return Lotus to the front.
Peterson had now fulfilled his contract, though he raced the first Grand Prix for Lotus before joining the March team.

Round 1 saw a double retirement for Lotus. Not the best start to the season.
The next two rounds saw Andretti driving a Parnelli, so his Lotus was taken over by Bob Evans, who finished 10th in the South African Grand Prix but failed to qualify for the Long Beach race.
These two events saw two retirements for Nilsson, though the next round in Spain gave him a well-earned 3rd place. Andretti returned to Lotus in Spain, though that race and the following Belgian Grand Prix heralded two retirements.
Andretti missed the Monaco Grand Prix to race at Indianapolis, but returned at the Swedish Grand Prix where he retired, but had the consolation of setting fastest lap.
The following race in France gave Andretti his first points of the season with a 5th place finish.
A 5th place was also earned by Gunner Nilsson in the German Grand Prix two races later.
The following Austrian Grand Prix gave Lotus a double points finish with Nilsson 3rd and Andretti 5th. Andretti earned a 3rd place in the Dutch Grand Prix 1 race later.
Canada gave Andretti another 3rd place before the highlight of 1976. Pole and win for Andretti, 6th place for Nilsson in the final round of the season in Japan, Lotus were back.

The final round flourish made the final Championship tables look much more respectable for Lotus.
4th place in the Constructors Championship while Andretti was 6th and Nilsson 10th in the Drivers Championship.