Neal Parker, 58, of Millville, N.J., crashed at Raceway Park in Old Bridge, state police Sgt. Stephen Jones said. He was pronounced dead at the scene.
Parker was entered in the Top Alcohol Funny Car competition. The crash occurred shortly before noon.
"Parker ... crashed Friday at a high rate of speed in the shutdown area during qualifying," the NHRA said in a statement on its website. "On behalf of everyone at NHRA and Raceway Park, we are deeply saddened and want to pass along our sincere condolences to the entire Parker family."
NHRA officials and New Jersey state police are investigating.
Spectator David Farrah of Manalapan said it appeared the driver couldn't stop.
"It looked like the chute just didn't open and he couldn't stop," Farrah said. "The car was just crushed. It was tragic."
Another spectator, George Tompkins, 63, of Metuchen, said he left the stands shortly before the crash. He didn't see the wreck, but said he heard it.
"You heard that sound and knew right away that it was bad," he said.
Racing was suspended for more than three hours while the crash was being investigated.
"This whole community is sad, my phone hasn't stopped ringing, from the Police Chief to the mayor to everybody's calling to express condolences," Donald Fauerbach of the New Jersey Motorsports Park told Action News.
Parker was recognized as a pioneer in his field starting as a young man building his cars from scratch. Friends say, his trademark was seeing how you could build the fastest with the least amount of money.
"From running just AA modified sports cars in the 60's all the way to today's modern alcohol burning 5.7 second fuel burning, alcohol Funny Cars, I mean, that's serious racing," Fauerbach said.
The news of Parker's death spread fast in the tight knit Millville community.
"We knew him and he was such a professional person in everything he did and he was really friendly and I'm sure his family is just devastated," Jane Mancini said.
Friday's accident comes nearly two years after top racer Scott Kalitta died when his Funny Car burst into flames and crashed at the end of the track in central New Jersey.
Kalitta's Toyota Solara was traveling at about 300 mph when it burst into flames.
New Jersey State Police investigators determined that "catastrophic mechanical failure" caused the fuel-fired explosion.
The 1994 and 1995 Top Fuel season champion had 18 career victories.
In February, a spectator died after being hit by a tire from a crashing dragster at the NHRA Arizona Nationals. The woman was watching a first-round Top Fuel run when Antron Brown's Matco Tools/U.S. Army dragster went out of control on the strip and its left rear wheel came off.
Funeral arrangements and a tribute to Milliville's legendary racer, Neil Parker, were still pending as of Friday night.
