Incumbent Governor Evan Bayh, a Democrat, won reelection over his Republican challenger, Linley E. Pearson with 62% of the vote.

As of 2022[update], this marks the last occasion that the following counties have voted Democratic in a gubernatorial election: Boone, Daviess, Elkhart, Hamilton, Hendricks, Huntington, Johnson, Kosciusko, Lawrence, Miami, Morgan, Union, Wabash, and Wells.

Incumbent Governor Evan Bayh was unopposed in the Democratic primary.

Bayh won the election with 62% of the popular vote to Pearson's 37%.

Bayh's total in the popular vote was the largest in recent history.