The Colts' 9–7 record was good enough to get them into the playoffs for the first time since 1987, largely due to the insertion of Jim Harbaugh into the starting quarterback role. It was only the second playoff appearance for the franchise since it moved from Baltimore in 1984, and was its first playoff appearance in a non-strike year since 1977. They defeated the defending conference champion San Diego Chargers in their first playoff game (their first playoff win since 1971, when the team was still located in Baltimore), then upset the top-seeded Kansas City Chiefs in the Divisional Playoffs. The Colts would fall short in the AFC Championship Game against the Pittsburgh Steelers, in a game that came down to the final play.
On the opening kickoff, Colts return specialist Aaron Bailey, found a gap and sprinted 95 yards for a touchdown. The Jaguars countered by moving the ball to the Colts' 9–yard line; however, Mike Hollis' 27–yard field goal attempt was blocked. In response, the Colts scored another touchdown, with Bailey catching a 14–yard pass. A 45–yard completion to wide receiver Willie Jackson contributed to a Jaguars touchdown, cutting the Colts lead to 7 early in the second quarter. After a Colts punt, Cedric Tillman fumbled the ball during the return, with the Colts' Derwin Gray recovering the ball, which set up another Colts touchdown. On the following drive, Jaguars' quarterback Mark Brunell was intercepted by cornerback Eugene Daniel, who returned it to Jacksonville's 3–yard line. Nevertheless, the Colts were unable to score a touchdown and opted for a field goal, concluding the first half with the Colts leading 24–7. The Jaguars commenced the second half with a successful field goal drive, which the Colts promptly matched with a field goal of their own. As the fourth quarter began, the Jaguars executed a touchdown drive, reducing the Colts lead to 10. They attempted an onside kick, but the Colts recovered, leading to a subsequent touchdown for the Colts. In response, the Jaguars quickly scored a touchdown in just four plays, highlighted by a 31–yard pass to Jackson. The Jaguars attempted another onside kick, but the Colts recovered once more and added another touchdown to their tally. In the closing minutes, the Jaguars mounted a drive where Brunell connected with Jackson for another touchdown. They made a third attempt at an onside kick, but the Colts again recovered, ultimately securing a 41–31 victory in their inaugural matchup.
The team received a Wild-Card playoff berth for the playoffs and traveled to San Diego to play the Chargers. They went on to beat the Chargers, their first playoff win in 24 years and first since moving to Indianapolis. They also won their Divisional Round game against the #1 seed Kansas City Chiefs but would fall short in the AFC Championship game to the Pittsburgh Steelers.
