Finally, the third edition of the SAFF Championship was conducted in Nepal.
1997 – Nepal
Though the championship was played in Kathmandu, Nepal failed to take the home advantage and instead lost the both games of the group against Sri Lanka and Pakistan. Nepal lost 2-0 to Sri Lanka and 3-1 to Pakistan. Therefore, Nepal were eliminated from the group stage after finishing bottom of group A.
India won the third edition of the championship and its second title.