In 2013 Davison tested a car for Dale Coyne Racing at the Mid-Ohio Sports Car Course. A few weeks later it was announced that he would drive the team's No. 18 car at the race there. It would be his first open wheel race appearance since 2009. Following the horrific accident by Sebastian Bourdais during qualifying for the 2017 Indianapolis 500, it was announced that James would be stepping into the number 18 Dale Coyne Racing Honda for the remainder of the season. In the later stages of the race, Davison matched a record set by Tom Sneva in 1980 and became the third driver in Indy history to start 33rd and lead laps in the race, having led two laps. He then got caught up in a late wreck with 17 laps to go. A year later, Davison barely qualified for the 2018 Indianapolis 500, bumping out longtime IndyCar rival James Hinchcliffe. He would finish in last place, after a crash on lap 47 caused by contact with Takuma Sato's car. Davison finished in last place again at the 2020 Indianapolis 500 due to a mechanical failure only six laps into the race.