The 1987 Australian Formula 2 Championship was a CAMS sanctioned motor racing title for drivers of Australian Formula 2 racing cars. It was the 20th Australian Formula 2 Championship. The championship was won by Arthur Abrahams driving a modified version of a Cheetah Mk.8 after championship leader Mark McLaughlin (Elfin 852) collided with third placed driver Graeme Smith (Cheetah Mk.7) in the warm-up of the final race of the season. Abrahams only win was at the final race compared to McLaughlin's three. The other race wins were taken by Cheetah driver Derek Pingel and Ralt RT30 driver David Brabham. Abrahams won the championship by 20 points. Smith stayed third, 41 points behind McLaughlin and just four points ahead of Pingel. Magnum driver Neil Israel was a further three points behind.