The German sped round the Monza circuit in one minute 20.526 seconds with Ferrari teammate Rubens Barrichello second in 1:20.861.
Ferrari's technical director said the Finn is an exceptional driver who doesn't appear to make many errors.
The world champion spun and hit the barriers while approaching one of the fastest parts of the Monza track at around 300 kph.
McLaren were back, ending their biggest slump of the last two decades to emerge as winners for the first time since March last year, and so too was real racing.
Michael Schumacher can become the first driver to win the same Grand Prix eight times, if he wins Sunday's French GP.
The Colombian has promised Williams he will do all he can to help them win the constructors' title.
On a pivotal moment on lap two, he was given a 'drive-through' penalty after an incident with Ferrari's Rubens Barrichello.
The Renault driver said with a bit of passion and luck, and good performance from the car, he can win the US Grand Prix.
Michael Schumacher may be still two races away from a record sixth F1 title, but according to his team's web site he has already won it.
The six-time world champion was again untouchable as he led home a seventh Ferrari one-two of the season in the Hungarian Grand Prix.
Rubens Barrichello was 0.128 slower than Montoya in second place, while Schumacher was third with 1:20.784.
Michael Schumacher was second and Narain Karthikeyan 17th on the start grid for Sunday's Canadian GP.
The Ferrari driver is one point ahead of Williams's Juan Pablo Montoya and two clear of McLaren's Kimi Raikkonen with two races remaining after Monza.\n\n
Balbir Singh, the Indian-born physiotherapist who has been at the German's side for the past 10 years, wants to spend more time with his family.
The seven-time world champion, who is having a bad run this F1 season, said he's not even close to giving up the title.
Briton Jenson Button will be docked 10 places on the starting grid for having his BAR's engine replaced.
The six times world champion backed the possibility of a grand prix being held one day in the British capital, providing safety can be guaranteed.
David Coulthard grabbed second place for McLaren, ahead of Jarno Trulli and Fernando Alonso in the two Renaults.
"He's got the old matador spirit, that's for sure."
Nobody leaving Imola could doubt that the battle lines were drawn for what promises to be a thrillingly competitive season.
Jordan's Indian ace posted his third finish in four races in the Formula One championship.
The Brazilian was 0.265 seconds quicker than the championship leader who is seeking his eighth win in nine races.
The Ferrari driver is the first Formula One driver to win the same Grand Prix seven times.
