After Milan went 3–0 up in the first half, Liverpool scored three goals in the space of six second-half minutes before winning the match 3–2 on penalties in what has since become known as the "Miracle of Istanbul.
The knockout stage followed a simple, single-elimination format, with the ties in each round (except for the final) being played over two legs, with whichever team scored the most goals over the course of the two legs progressing to the next round.
If the teams could still not be separated, a period of extra time lasting 30 minutes (split into two 15-minute halves) was played.
If the scores were still level after extra time, the winner was decided via a penalty shoot-out.
As in every season of the competition, the final was played as a single match at a neutral venue, which in 2005 was the Atatürk Olympic Stadium in Istanbul, Turkey.