It was finally announced that Mosley would be defending his WBC and Lineal welterweight titles against Vernon Forrest (33-0, 26 KOs). The fight took place at the Madison Square Garden Theater in New York City on January 26, 2002. The Ring Magazine welterweight title was also at stake. Mosley was knocked down twice in the second round as he went on to lose a unanimous decision, his first loss in professional career. In round 2, Mosley suffered a cut at the hairline from an accidental clash of heads. The final scorecards read 115-110, 117-108 and 118-108 all in favor of Forrest.