At the tournament, France defeated Russia in the quarter-finals but lost to Italy in a penalty shootout at the semifinal stage.

Italy again knocked out the French side at the semi-final stage, the lone goal coming from Francesco Totti.

At the quarter-finals, France were eliminated 2–1 by Portugal after a golden goal was scored from the penalty spot by José Calado.

[citation needed] Domenech briefly coached the France national under-20 football team at the 2001 FIFA World Youth Championship.

[citation needed] On 12 July 2004, Domenech was a surprise choice to succeed Jacques Santini after the country's disappointing exit from UEFA Euro 2004 by losing in the quarter-final match to the eventual tournament-upset winners Greece.

Domenech persuaded Claude Makélélé, Lilian Thuram and Zidane, members of France's "golden generation", out of international retirement to aid the national team.

[10] Domenech's selection for France's World Cup squad was further criticised when he publicly announced that Fabien Barthez would start ahead of Lyon goalkeeper Grégory Coupet.

This decision was met with derision in the French press and also led to Coupet walking out of the national squad before the tournament, although he later returned.

[11] Domenech also excluded Roma centre-back Philippe Mexès from his 2006 and 2008 squads, taking along the likes of Jean-Alain Boumsong in his place.

[12] France had a slow start in the World Cup, recording draws against Switzerland and South Korea before finally defeating Togo.

The game was controversial, as Thierry Henry handled the ball before setting up William Gallas to score the winning goal.

[19] The draw was then followed by a 2–0 defeat to Mexico, during which striker Nicolas Anelka reportedly directed an expletive-laden[20] tirade at Domenech.

France's World Cup campaign ended with a 2–1 defeat to hosts South Africa, meaning Les Bleus finished at the bottom of Group A without winning a single game.

Domenech bowed out by refusing to shake the hand of South Africa's coach Carlos Alberto Parreira.

[27] On 26 December 2020, ten years after last managing a team, Domenech signed with Ligue 1 side Nantes.

[28] On 10 February 2021, Domenech was released of his duties as head coach after not winning a single game in his eight matches in charge.

[29] Domenech was previously in a civil relationship with French TV presenter Estelle Denis, whom he met at the studios of channel Infosport+.