For 1985 Holmes joined Forsythe Racing to drive the No. 33 Jiffy Mixes Lola T85/00-Cosworth DFX. Holmes got a best finish of ninth at the Michigan 500 at Michigan International Speedway. Holmes also finished 10th at the Indianapolis 500. The result came under some controversy as Holmes was criticized for making contact with then-second place driver and former teammate Sneva, which caused Sneva and Rich Vogler to crash. Following the Detroit News 200 at Michigan International Speedway Holmes was replaced by Jan Lammers. Holmes finished the season 25th in the CART standings and 10th in the USAC standings. Holmes did not compete in any races in 1986 or 1987.