Fatih Terim in the Rossonero hot seat was the first change of the summer of 2001. It wasn’t the only one, as the arrivals of Pirlo, Rui Costa, Inzaghi, Javi Moreno and Contra offset the departures of Bierhoff, Boban and Leonardo. In the league, a fine win in the Derby on Matchday 8 (4-2) was not enough to save coach Terim's job, sacked after an inconsistent start to the season. He was replaced by Ancelotti. The start of Carlo's reign, after his 5-year stint as a player from 1987-1992, did not bring an immediate turnaround on the Serie A front, but the Rossoneri continued to progress in the cups. Their journey in the Coppa Italia ended in the semi-finals, beaten 3-2 by Juventus over both legs after victories over Perugia and Lazio. In the league, after a final sprint against dark horses Chievo Verona, the Rossoneri finished fourth, earning them a spot in the Champions League qualifiers for the following season.
The Rossoneri found victory in five of their first six opening UEFA Cup matches, against BATE Borisov, CSKA Sofia and Sporting CP, propelling them to the round of 16 in the competition. Wins over Roda JC - on penalties - and Hapoel Tel Aviv earned them a place in the UEFA Cup semi-finals. It was Borussia Dortmund who awaited AC Milan at that stage, 30 years after their last meeting: a 4-0 win in the first leg caught the Rossoneri by surprise, and the 3-1 win in the return leg was not enough to stop the Germans.
