The fifth World Championship was once again held in South America. This time Montevideo, Uruguay, played host with games held at 'The Cylinder,' an 18,000 seat steel and concrete stadium. The teams not only had to combat each other, but also the cold as the stadium's internal temperature hovered around a frigid 35 degrees. Blankets and electric heaters were supplied to benches to help keep the players warm during games.

Having assembled for only 10 days of practice at a Governors Island, New York, training camp, the U.S. relied on its depth in the tournament's early goings. Opening the preliminary round in Mercedes, Uruguay, the U.S. fought its way to victories over Italy, 67-56, Mexico, 75-65, and Yugoslavia 76-71.

In the first game of the final round, the USA squad, led by Vern Benson's 15 points and Pete Cunningham's 12 points, defeated Argentina 76-66. Host Uruguay was whipped 88-53 as Stan McKenzie scored 17 points. Facing the Soviet Union next and looking for its sixth consecutive victory, the U.S. won 59-58 thanks to Mike Barrett's 17 points, including the last six points and the game winner which came with three seconds left.

In a rematch with Yugoslavia, a team the USA had defeated 76-71 in the preliminary round, this time the U.S. would not be as fortunate as Yugoslavia held on to defeat the Americans 73-72. Leading by as many as 14 points in the second half, the U.S. lost three key players down the stretch to fouls allowing Yugoslavia to rally. Trailing 73-71 with just two seconds remaining, the USA's hopes for victory were dashed when Vern Benson missed the second of his two free throws dooming the U.S. to the 73-72 defeat. Regrouping from the heartbreaking loss, behind 20 points from Al Tucker the U.S. destroyed Poland in the second half and sailed to a 91-61 win to keep its gold medal hopes alive.

The United States, the Soviet Union and Yugoslavia all entered the final day of competition with identical 4-1 records. If the U.S. defeated Brazil and the USSR beat Yugoslavia, then the Americans would win the title.

But Brazil served as the spoiler bettering the Americans, 80-71. The U.S. played catch-up from the outset falling to an early deficit that left them trailing by 11 at half, 40-29. Despite coming as close as three in the second half, the U.S. was never able to pull ahead. Carrier scored 20 for the U.S. in the loss.

Meanwhile, the heavily favored Soviet team scored its first win over Yugoslavia to claim the title and the brand new, solid gold World Championship cup bearing the name of Dr. James Naismith. Although the USA, Yugoslavia and Brazil all finished with 4-2 records, Yugoslavia was awarded second, Brazil third and the USA fourth based on results between the tied teams.