Castroneves stayed with Penske for the 2016 season. At the Grand Prix of Long Beach, he led a race-high 47 laps from pole position but a strategy error left him third. Castroneves took another podium finish two races later, a second place at the Grand Prix of Indianapolis. After qualifying ninth for the Indianapolis 500, he led 24 laps, finishing 11th after a lap-160 collision with Hildebrand dislodged Castroneves' left-rear bumper pod. Castroneves achieved two more podium finishes, a second in the Honda Indy Toronto, and a third in the IndyCar Grand Prix at the Glen. In the ABC Supply 500 at Pocono, the top of his vehicle was mounted by Alexander Rossi's airborne car after Rossi and Charlie Kimball collided in the pit lane. Castroneves was uninjured from the impact. With 504 points, Castroneves was fourth in the drivers' championship.