Jennifer Capriati was the two-time defending champion, but lost to Marlene Weingärtner in the first round. Capriati's loss marked the first time the defending Australian Open champion lost in the first round, and the first time at any major that the defending champion lost in the first round since Steffi Graf at the 1994 Wimbledon Championships. With Lindsay Davenport's defeat in the fourth round, a first-time Australian Open champion was guaranteed.
This tournament marked the first Australian Open final without Martina Hingis since 1996. It was also the final appearance of four-time champion Monica Seles, who lost to Klára Koukalová in the second round.