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A total of 65 teams entered the NCAA tournament. Thirty of the teams earned automatic bids by winning their conference tournaments. Penn earned an automatic bid by winning the regular-season title of the Ivy League, which does not conduct a conference tournament. The remaining 34 teams were granted "at-large" bids, which are extended by the NCAA Selection Committee.

Two teams played an opening-round game, popularly called the "play-in" game; the winner of that game advanced to the main draw of the tournament and plays a top seed in one of the regionals. This game has been played at the University of Dayton Arena in Dayton, Ohio since its inception in 2001.

This was the second year of the so-called "pod" system, in which the eight first- and second-round sites are distributed around the four regionals. Before the 2004 tournament, all teams playing at a first- or second-round site fed into the same regional tournament. Since 2004, teams have been assigned to first- and second-round sites so as to limit the early-round travel of as many teams as possible. Half of the teams in a pod advance into separate regional tournaments.

All 64 teams were seeded 1 to 16 within their regionals; the winner of the play-in game automatically gets a 16 seed. The Selection Committee seeds the entire field from 1 to 65. For the first time in 2004, the ranking of the four top seeds against each other would determine the pairings in the Final Four. The top overall tournement seed would be seeded to play the fourth overall seed in the national semifinals, should both teams advance that far.