The biggest storyline for No Way Out was when Vince McMahon revealed that he would unleash the New World Order (nWo) upon the World Wrestling Federation. McMahon said he wouldn't bring the nWo out if Ric Flair handed over his 50% ownership of the WWF, however, Flair refused.
After defeating Kurt Angle on the January 28, 2002 episode of WWF Raw, Stone Cold Steve Austin earned a match at No Way Out for the Undisputed WWF Championship against champion Chris Jericho (who defeated Steve Austin to become the 1st Undisputed Champion at Vengeance). Jericho had just retained the title against The Rock at the 2002 Royal Rumble. Afterwords, he successfully defended the title again against Maven on the same night where Austin became the #1 Contender. Jericho and Austin spent the weeks before No Way Out getting back at each other, including a segment where Jericho knocked out Austin and poured beer all over him. On the February 14th edition of WWF SmackDown!, Austin nailed Jericho with the Stone Cold Stunner then poured beer all over him in retaliation.
After winning the 2002 Royal Rumble, Triple H was guaranteed a shot at the Undisputed WWF Championship at WrestleMania X8. Kurt Angle, who felt that he should have won the Royal Rumble instead, challenged Triple H to a match at No Way Out with his WrestleMania title shot on the line. Triple H accepted, but was also having trouble with Stephanie McMahon, his on-screen wife, outside the ring. Stephanie demanded that they renew their wedding vows on the February 11, 2002 episode of Raw, because she was pregnant with their child. This was later revealed as a trick, and the doctor that Stephanie had brought in to verify her pregnacy was fake. On the night of the ceremony, Triple H exposed the truth, and declared an end to their on-screen marriage. Three days later, on the February 14, 2002 episode of WWF SmackDown!, Stephanie announced herself as the guest referee in the match between Triple H and Kurt Angle at No Way Out.