The yellow flag is the signal for caution. When it is held stationary it is an indication that there is a problem ahead. Drivers must slow and refrain from passing. A waving yellow flag indicates immediate danger ahead. Drivers must be prepared to stop and cannot pass, although they can close the distance to the car immediately in front. Yellow flags can indicate problems in one area of a track when waved by only one or two corner workers. A "full course caution" (or yellow) is when all flags around the track are being waved. The starter initiates this. Passing under the yellow is a serious infraction and drivers may be severely punished. When a driver is penalized for passing under yellow it is often a controversial call and may be appealed.

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