Appalachian State finished their regular season with an 8–3 record (6–1 in conference). Two of their losses were to Division I-A teams; Kansas and LSU. The Mountaineers were the second-seed in the tournament and defeated Lafayette, Southern Illinois, and Furman to reach the final. This was the first appearance for Appalachian State in a Division I-AA championship game.
Northern Iowa finished their regular season with an 8–3 record (5–2 in conference). One of their losses was to Iowa of Division I-A. The Panthers were unseeded in the tournament; they defeated Eastern Washington, first-seed New Hampshire, and fourth-seed Texas State to reach the final. This was also the first appearance for Northern Iowa in a Division I-AA championship game.
Northern Iowa took a 6–0 lead in the first quarter, from a pair of field goals. In the second quarter, Appalachian State briefly went ahead, 7–6, on a five-yard touchdown run by Kevin Richardson. Northern Iowa then reclaimed the lead on a touchdown of their own, and extended their advantage to 16–7 from another field goal shortly before halftime. In the third quarter, Richardson's second touchdown of the game brought Appalachian State to within two points, 16–14. With just over nine minutes remaining in the fourth quarter, Appalachian State forced a fumble, which was picked up and run in for a touchdown by Jason Hunter. There would be no further scoring, as Appalachian State won their first title via the 21–16 final.[3]