Their third appearance, which was in the 1962 African Cup of Nations, hosted in Ethiopia, in which Egypt faced Uganda in the semi-finals, there were only four teams in this tournament, by a score of 2–1. Egypt then advanced to the finals, where they faced the hosts Ethiopia, but they lost 4–2 during extra time, thus losing their first final in the Africa Cup of Nations, along with Ethiopia becoming champions for the first time and also being the first nation to win it other than Egypt, who were champions twice.