MLS Cup 2016 was the 21st edition of MLS Cup, the championship game of Major League Soccer (MLS), taking place on December 10, 2016, at BMO Field in Toronto, Ontario. The Seattle Sounders FC won the cup over Toronto FC after a penalty shoot-out that followed a 0–0 draw.

The final was the first time that a Canadian team contested the MLS Cup as well as the first time the game was contested between two MLS expansion teams; it was also the second cup to be held at BMO Field, the first being MLS Cup 2010. It was the first final since 2008 to feature two teams making their first appearance in the MLS Cup.

The MLS Cup is the post-season championship of Major League Soccer (MLS), a professional club soccer league in the United States and Canada. The 2016 season was the 21st in MLS history, and was contested by 20 teams in two conferences. Each club played 34 matches during the regular season from March to October, facing each team in the same conference at least twice and teams in the other conference at least once. The playoffs, running from October to December, was contested between the top six clubs in each conference and included four rounds: a one-match knockout round for the lowest-seeded teams, two rounds of home-and-away series, and the one-match final.

The 2016 edition of the MLS Cup was the first to feature two expansion teams not part of the original clubs from the league's inception. Both teams were making their first appearance in the final, which had not occurred since 2008. Toronto and Seattle faced each other once during the 2016 regular season, ending in a 1–1 draw at BMO Field on July 2.

Toronto FC became the first Canadian club to qualify for the MLS Cup final, in their tenth season in Major League Soccer.

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