A total of 119 songs were submitted to İTV. The selection process was the same as in 2011, with the exception that the number of the contestants was reduced to 72 singers. They were then split in eight heats with nine singers in each. The voting was 50% jury voting and 50% televoting. Weekly heats consisted of five shows aired from Monday to Friday, with a foreign song performed on Monday, an Azerbaijani song on Tuesday, a past-year Eurovision song on Wednesday, a song with a special focus on performance on Thursday and a song of the singer's own choice on Friday. The selected contestants included three-year candidate Azad Shabanov, as well as candidates from the previous year's selection tour: Altun Zeynalov, Empathy, Emin Hasan, Rustam Allazov, Janana Zeynalova, Orkhan Nasibov, Sabina Babayeva, Ramin Guliyev, Kanan Gadimov, Adil Bakhishli, Ulvi Rashidov, Rinat Alimov, Habil Ahmadov, and Khana Hasanova. Applicants from abroad included Yan Kashepava from the United States and Vlada Akhundova from Russia.
Semi-final allocation draw on 25 January 2012. Azerbaijan voted in the first semi-final.
Azerbaijan, as the last year's winner, hosted the contest, and therefore automatically qualified for the final, on 26 May.
The draw that determined the semi-finals and running orders was held on 25 January 2012. As a result of this draw, Azerbaijan (along with Italy and Spain) voted in the first semi-final, held on 22 May.
Sabina Babayeva performed at the Grand Final and came fourth place overall with a total of 150 points.