In the preliminary round, the 18 teams were split up into four groups. Two of the groups had five teams each, with the other two having four each. The top two teams in each group advanced to the final round, while the other ten teams were relegated to classification play.
The first classification round was played in two round-robin groups. Teams advanced into the second classification round depending on their results in the first round—first and second place teams played in the 9–12 segment of classification round 2 while third and fourth place teams played for 13th to 16th places. The fifth place teams played one game against each other for 17th and 18th places.
After two rounds of the round robin, the Soviet Union was the only team still undefeated. Poland had lost both of their games, and the other six teams were 1–1.
Bulgaria
73 – 46
Romania
Italy
65 – 81
Hungary
Poland
72 – 68
Czechoslovakia
Yugoslavia
52 – 75
Soviet Union
The Soviet team remained undefeated with an easy win over Yugoslavia, while Bulgaria and Hungary followed closely at 2–1 as the other 5 teams trailed at 1–2.
Romania
93 – 68
Yugoslavia
Czechoslovakia
81 – 74
Soviet Union
Hungary
69 – 59
Bulgaria
Poland
67 – 59
Italy
Ending the Soviet Union's undefeated streak that had spanned 32 games and was into its 4th tournament, Czechoslovakia won 81–74 to bump the Soviet Union to 3–1, tied with a Hungarian team it had yet to face in direct competition in the final round.
Bulgaria
62 – 57
Poland
Yugoslavia
34 – 48
Hungary
Italy
48 – 96
Czechoslovakia
Soviet Union
84 – 66
Romania
The Soviet Union and Hungary each won their fifth-round games, moving up to 4–1 apiece with two games left. The sixth round would pit the two against each other, however, so the tie for the lead of the group was about to be broken. Bulgaria and Czechoslovakia remained close behind at 3–2, followed by Romania and Poland at 2–3. Yugoslavia and Italy brought up the rear with 1–4 records.
Poland
67 – 59
Yugoslavia
Czechoslovakia
91 – 69
Romania
Soviet Union
68 – 82
Hungary
Italy
72 – 76
Bulgaria
The host Hungarian team dealt the Soviet Union its second loss in Eurobasket history. The Soviets were for the first time no longer in control of their own destiny— the Hungarians had taken lead of the group and the Soviets could not directly take it back. They were now in a three-way tie for second place with Bulgaria and Czechoslovakia.
Yugoslavia
66 – 69
Italy
Soviet Union
101 – 76
Poland
Bulgaria
67 – 73
Czechoslovakia
Hungary
71 – 60
Romania
Hungary's defeat of Romania clinched the gold medal for the hosts, who were the only 6–1 team in the final round. The Soviets and Czechoslovakia both finished at 5–2, with Czechoslovakia taking the silver medal and the Soviet Union, three-time gold medal winners, finished with a bronze medal.
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Hungary (1st title)
Czechoslovakia 
Soviet Union 
Bulgaria 
