The tournament was once again held in the United States, in Miami and Pasadena. The format of the tournament stayed the same as in 2000: twelve teams were split into four groups of three. The top two teams in each group would advance to the quarterfinals. Ecuador and South Korea were invited from outside CONCACAF.
Canada, who rode the coin toss all the way to winning the 2000 Cup, needed luck once again, as all games in Group D ended with a 2-0 result. Lots were drawn, with Canada and Haiti moving on to the next round; Ecuador did not. But the Canadian team's luck ran dry in the semifinals, as the U.S. beat them on penalties after tying 0-0. The United States then met Costa Rica in the final and topped them 2-0 behind goals by Josh Wolff and Jeff Agoos for their first tournament win since 1991.
The 12 national teams involved in the tournament were required to register a squad of 18 players; only players in these squads were eligible to take part in the tournament.