The eight participating teams were divided into two groups of four teams each. In the group stage, the teams played against each other once in the league system. The group winner and the runner-up reached the semi-finals, the winners of the semi-finals played the final. A game for third place did not take place.
The final game also took place at the Jawaharlal Nehru Stadium in New Delhi. While India was already in 7 of the 8 finals of the South Asian Championships, it was the first ever final participation in a football tournament for Afghanistan. This was hailed as a minor sensation in the country. The clash in the group stage ended with a 1-1 draw, while hosts India won in the final.