The participants of the Championship Game were the finalists of the 1996 I-AA Playoffs, which began with a 16-team bracket.[5] The location of the title game, Marshall University Stadium, was determined before the playoffs started.[6]
Montana finished their regular season with a 14–0 record (8–0 in conference).[7] Seeded first in the playoffs, the Grizzlies defeated 16-seed Nicholls State, sixth-seed East Tennessee State, and fourth-seed Troy State to reach the final. This was the second appearance for Montana in a Division I-AA championship game, as the team was the defending champion from 1995.
Marshall also finished their regular season with a 14–0 record (8–0 in conference).[8] The Thundering Herd, seeded second, defeated 15-seed Delaware, tenth-seed Furman, and third-seed Northern Iowa to reach the final. This was the sixth appearance for Marshall in a Division I-AA championship game, having one prior win (1992) and four prior losses (1987, 1991, 1993, and 1995).