Fernando Alonso's bid to win the Indy 500 at his first attempt ended in engine failure with just over 20 laps to go, after putting in an amazing rookie performance which saw him lead the race for 27 laps.

The double Formula One world champion's Andretti Autosport Honda gave up the ghost on Lap 179 of 200, a sight all too familiar for the Spaniard whose Honda engine has been plagued with unreliability during the 2017 F1 season.

Ex-F1 driver Takuma Sato took the chequered flag at 101st running of the race at the famous Indianapolis Motor Speedway, fending off three-time winner Helio Castroneves.

The action-packed race was hit by near catastrophe in the early stages with pole sitter Scott Dixon coming together with Jay Howard in a shunt which ripped Dixon's car in two. Luckily, both drivers walked away from the incident unhurt.

Alonso was lauded by his peers and fans alike for putting in such a strong rookie performance, receiving a standing ovation from the crowd after his retirement.

"I felt the noise, the engine friction, I backed off and saw the smoke. It's a shame, I thought we deserved to finish the race and experience the end. Who knows which position we could be," Alonso said after the race.

"I mean the whole day has been a very nice experience. The racing was fun, it was nice. I think the performance was good, we were leading the race. It was a nice surprise to be with the best in oval racing and be competitive. Obviously I feel competitive, If I come back, it will be easier the second time. One of the best experiences of my career."

Alonso will now turn his attention back to F1, which travels to Canada for its next race on June 11.

Verizon IndyCar Series driver Fernando Alonso acknowledges the fans after his engine blew in turn one knocking him out of the 101st Running of the Indianapolis 500 at Indianapolis Motor Speedway. [Photo/Agencies]