The event took place at the Hard Rock Hotel and Casino in Las Vegas, Nevada, and was broadcast live on Spike TV in the United States and Canada.

The main event between Tim Sylvia and Assuério Silva was touted as a match to determine the next contender for the UFC Heavyweight Championship, then held by Andrei Arlovski.

The disclosed fighter payroll for Ultimate Fight Night 3 was $183,000.

During the broadcast, UFC President Dana White announced a bout between Matt Hughes and Royce Gracie, which later occurred at UFC 60.

Tim Sylvia: $80,000 Stephan Bonnar: $24,000 Jason Von Flue: $10,000 Josh Burkman: $10,000 Chris Leben: $10,000 Duane Ludwig: $8,000 Assuerio Silva: $8,000 Spencer Fisher: $8,000 Drew Fickett: $6,000 James Irvin: $5,000 Jorge Rivera: $5,000 Alex Karalexis: $3,000 Aaron Riley: $3,000 Jonathan Goulet: $3,000 Disclosed Fighter Payroll: $183,000