On a cool and overcast day at the Nürburgring, Charles Leclerc clocked a best lap in 1:12.380 to outpace Max Verstappen of Red Bull by 0.168 seconds.
Leclerc's teammate Sebastian Vettel was third, just 0.264 seconds behind the leader.
Mercedes' Valtteri Bottas was fourth, ahead of Kevin Magnussen of Haas and Lewis Hamilton, who struggled for pace and consistency throughout the session.
Hamilton's session was marked by a pit stop for a change of side-pods and a deleted lap for running off-track at the final corner.
Despite cooler conditions, which were expected to favor Mercedes, the Italian team's customer teams Alfa Romeo and Haas were also in pursuit of the top times.
Mercedes had introduced a new aerodynamic package, but chose to revert to their previous bodywork in an attempt to regain their pace.
However, it was Ferrari who set the pace, with Leclerc leading the way ahead of Vettel and Verstappen.
As the session came to a close, Verstappen jumped to second on his final runs, but Hamilton's improved lap was deleted for running off-track at the final corner.
