Maria de Villota is out of sedation and talking to her family, the Marussia team said on Wednesday evening.
The team said that, despite the injures she suffered eight days ago in her testing accident, her recovery has been "remarkable".
"Following two successful surgical procedures in the days following the accident, last Saturday the medical team at Addenbrooke's Hospital began to gradually reduce the level of Maria's sedation," Marussia said in a statement.
"By Sunday morning, Maria was awake and able to speak to her family, which provided a very important - albeit early - indication that there were positive signs for Maria's recovery.
"Since that time, Maria has been making small but significant steps.
She was moved out of the Neurological Critical Care Unit on Monday and is no longer receiving sedation. Her family remain by her side and she is communicating freely with them and the medical team. Medical assessments are ongoing to monitor Maria's improving condition."
De Villota was involved in a freak accident while carrying out straight-line testing for the team at Duxford airfield on July 3rd.
She lost her right eye in the accident.