The win, Hill's fifth of the season and third in succession, enabled him to move within one point of Drivers' Championship leader, German Michael Schumacher, while the 1-2 finish allowed Williams to take over the lead of the Constructors' Championship from Benetton.
With Michael Schumacher still banned, the Benetton team continued to run JJ Lehto alongside Jos Verstappen, while the financially-troubled Lotus team brought back Philippe Adams to partner Johnny Herbert.
During the Friday qualifying session, Eddie Irvine spun his Jordan and in the process collided with Damon Hill's Williams.
The top ten was completed by Martin Brundle in the other McLaren, Rubens Barrichello in the other Jordan, Heinz-Harald Frentzen in the Sauber, and Verstappen.
Olivier Panis originally finished 9th but was disqualified for having illegal skidblock wear.