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Ex-NASCAR Driver Kyle Larson Competing In World Of Outlaws Race ... After N-Word Incident

Fired NASCAR driver Kyle Larson is returning to the racetrack in a World of Outlaws event on Friday ... 3 weeks after getting the boot for saying the n-word.

27-year-old Larson was kicked off the Chip Ganassi Racing team and lost a bunch of sponsors -- including McDonald's and Credit One Bank -- after using the racial slur during an iRacing event last month.

NASCAR suspended Larson and required him to take sensitivity training before returning to competition ... and in the meantime, he's getting his fix by racing in the W.O.O. event at Knoxville Raceway in Iowa.

According to Racer reporter Kelly Crandall, Larson DID complete a sensitivity course to be able to compete in the dirt track race ... which will also feature ex-NASCAR driver Kasey Kahne.

FYI, World of Outlaws is NOT affiliated with NASCAR.

Larson has apologized for using the word .. saying, "I made a mistake and said the word that should never ever be said and there's no excuse for that."

"I wasn't raised that way and it's just an awful thing to say. I feel very sorry for my family, my friends, my partners, the NASCAR community and especially the African-American community."

Larsen is half-Japanese and has talked about how the NASCAR Driver for Diversity program helped him get to the big show.

As for the race, it's going down without fans in attendance due to ... well, you know.

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