The event was headlined by a UFC Women's Bantamweight Championship bout between current champion Amanda Nunes and former champion Ronda Rousey.

A UFC Bantamweight Championship bout between then champion Dominick Cruz and Cody Garbrandt co-headlined the event.

A potential heavyweight title eliminator bout between former UFC Heavyweight Champions Fabrício Werdum and Cain Velasquez was expected to take place on the card.The pairing met previously in June 2015 at UFC 188, with then interim champion Werdum unifying the title with Velasquez's undisputed title, as he won the fight via submission in the third round.However the Nevada State Athletic Commission, after analyzing physical examinations and interviews, deemed Velasquez unfit to compete due to prior injuries, and pulled him from the event on December 24. The bout was eventually scrapped, and Werdum was removed from the card as well.

Another potential title eliminator included a bantamweight bout between former champion T.J. Dillashaw and John Lineker.

Matt Brown was expected to face former Strikeforce Welterweight Champion Tarec Saffiedine at the event.However, Brown was pulled from the fight on November 11 in favor of a matchup with former UFC Lightweight Championship challenger Donald Cerrone three weeks earlier at UFC 206.[11] Saffiedine instead faced Dong Hyun Kim.

Maryna Moroz was very briefly linked to a fight with Jéssica Andrade at the event.On December 7 Moroz was replaced by Invicta FC Strawweight Champion Angela Hill.Hill was then ruled out of fighting at UFC 207 because of a rule in the UFC's anti-doping policy with USADA, but not because she had failed a drug test. The pair eventually fought at UFC Fight Night 104, with Andrade winning by unanimous decision.Subsequently, Andrade was removed from the card and was rescheduled for that event.

Sabah Homasi was linked to a fight with Brandon Thatch at the event.However, Homasi pulled out due to injury and was replaced by promotional newcomer Niko Price.

This was the last event in which longtime play-by-play commentator Mike Goldberg participated. He made his debut in 1997 at UFC Japan: Ultimate Japan.

At the weigh-ins, former UFC Welterweight Champion Johny Hendricks and Ray Borg missed weight for their bouts, weighing in at 173.5 lb and 129.5 lb, respectively. As a result, they were fined 20% and 30% of their respective fight purses, which went to their respective opponents Neil Magny and Louis Smolka. Later, Hendricks would move up in weight to the 185 pound division, as a result of consistent weight misses.