The FIBA Asia Challenge was previously known as the FIBA Asia Cup. It is the first step in the qualification process for the 2017 FIBA Asia Cup (formerly known as "FIBA Asia Championship").
The top 5 teams will earn for their respective sub-zones an extra berth at the 2017 FIBA Asia Cup, which will be the first inter-continental tournament featuring teams from both Asia and Oceania (i.e. Australia & New Zealand). The top teams from the 2017 FIBA Asia Cup qualify to play the 2017 New Competition System, from where 7 teams will qualify for the 2019 FIBA Basketball World Cup.
The 2016 FIBA Asia Challenge was held at the Twelve Thousand People Sport Hall, located in the north & south of the main street of the Azadi Sport Complex. Host Iran came in as the defending champion.
The initial round of the tournament will be played in a round robin format. The 12 participating teams have been divided into 4 groups of 3 teams each, and each team will play the 2 teams that are in the same group as them. All 12 preliminary round teams will advance to the second round, where they will be divided into 2 teams of 6 each. Each team will then play the 3 new teams in its group. The top 4 teams from each of the second round groups will then move on quarter-finals, followed by the semifinals and finals.