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Brazil began the tournament with a scoreless draw against Ecuador, with Ecuador having a goal controversially disallowed in the second half. This was followed by an emphatic 7–1 victory over Haiti, with Philippe Coutinho scoring a hat-trick. Needing only a draw to progress to the knockout stage of the tournament, Brazil suffered a controversial 1–0 loss to Peru, with Raúl Ruidíaz scoring by guiding the ball into the net with his arm. This loss, Brazil's first loss to Peru since 1985, saw Brazil eliminated from the tournament in the group stage for the first time since 1987. On 14 June 2016, he was fired by the CBF.

Dunga served as a commentator for IRIB during the 2014 World Cup.

On 22 July 2014, Dunga was announced as the new manager of Brazil, replacing Luiz Felipe Scolari. He returned to the position for the first time since Brazil's exit in the 2010 World Cup.

Dunga's first match in his second reign as Brazil's manager was a friendly match against 2014 World Cup quarter-finalists Colombia at Sun Life Stadium in Miami on 5 September 2014, with Brazil winning the match 1–0 through an 83rd-minute Neymar free-kick goal. Dunga followed this up with wins against Ecuador (1–0), in the 2014 Superclásico de las Américas against Argentina (2–0), against Japan (4–0), against Turkey (0–4), and against Austria (1–2). Dunga continued Brazil's winning streak in 2015 by defeating France 3–1 in another friendly. They followed this with wins against Chile (1–0), Mexico (2–0) and Honduras (1–0).

Brazil started the tournament with a tight victory against Peru after coming from behind by 2–1 (with Douglas Costa scoring in the dying moments), followed by a 1–0 defeat against Colombia and a 2–1 victory against Venezuela. In the knockout stage, Brazil faced Paraguay and was eliminated after drawing 1–1 in normal time and losing 4–3 in the penalty shootout. As such, Brazil was unable to qualify for a FIFA Confederations Cup (in this case, the 2017 edition) for the first time in almost 20 years.

On 12 December 2012, Dunga was confirmed as new coach of Internacional, where he started and finished his career as a player. On 3 October 2013, he was fired after a series of losses left the gaúcho team in disarray.

It was announced on 29 August 2011 that Dunga had signed a contract with Qatari club Al-Rayyan as a replacement for Paulo Autuori, but Al Rayyan opted to sign another coach after Dunga stated he was "not sure" about the position.

At the 2010 FIFA World Cup, Brazil made it to the quarter-finals, where they suffered a 2–1 loss to the Netherlands after having led the game 1–0. After Brazil's exit from the competition, Dunga announced he would stand down as coach, but was first dismissed by CBF on 24 July 2010. Dunga's 2010 World Cup selections were criticized by many, including famous Brazilian footballer Pelé. Pelé believed Alexandre Pato and Neymar should have been selected to the squad.

In 2007, Dunga managed Brazil to their second-straight Copa América title by beating Argentina in the final 3–0, who were heavily favored to win against a weaker Brazil squad. Dunga's squad also won the 2009 FIFA Confederations Cup in South Africa on 28 June 2009. The team came back from a 2–0 deficit against the United States to emerge victorious from a Lúcio header in the 84th minute that made the score 3–2.

^  a: Dunga was banned for two matches following his sending off on September 12, 2007; he was replaced by his assistant, Jorginho.

On 24 July 2006, Dunga was named as the new national coach of the Brazilian national team as a replacement for Carlos Alberto Parreira, despite the fact that he had no prior coaching experience at the professional level. Nonetheless, he made an impressive start with Brazil, winning four of his first five matches.

Dunga's first match in charge was against Norway which was played in Oslo on 16 August 2006; the game ended in a 1–1 draw. His second match was held against archrivals Argentina on 3 September at Arsenal's new Emirates Stadium in London; Brazil won 3–0. On 5 September, Brazil then defeated Wales 2–0 at Tottenham Hotspur's White Hart Lane ground. They later defeated Kuwaiti club Al-Kuwait 4–0, Ecuador 2–1 and Switzerland 2–1.

Dunga retained the role of the Brazilian national team's captain for the next four years until the 1998 FIFA World Cup, in which he participated, despite playing in the Japanese J. League, in what was considered to be a lower standard of competitive football at the time. The 1998 edition of the tournament was notable for the tensions and lack of teamwork within the Brazilian side. It was often visible on the pitch as demonstrated by the fact that Dunga got into a fight with teammate Bebeto in the first round match against Morocco, forcing the rest of the team to break them up. Despite these difficulties, Brazil went on to reach the final of the tournament, where they lost 3–0 to hosts France. En-route to the final, Dunga scored his team's fourth penalty kick in the shootout victory against the Netherlands in the semi-finals.

Raí initially started the 1994 World Cup in the United States as the Brazilian team's captain, but after allegedly being held responsible for Brazil's poor performances early on in the tournament, he was eventually dropped altogether in favour of Mazinho. Dunga took over the captaincy and went on to lift the trophy. Dunga scored the third penalty kick in the shoot-out victory against Italy in the final, following a 0–0 draw after extra-time. According to FIFA.com, the lack of attacking play in the final of the tournament against Italy was in part down to strong holding midfield play by Dino Baggio for Italy, and Dunga and Mauro Silva for Brazil.

Dunga was a starter for Brazil at the 1990 FIFA World Cup, during which he was held responsible more so than his teammates for the team's worst campaign at a World Cup since 1966, after a lackluster tournament and the squad's subsequent elimination in the second round by arch rivals Argentina. In the following years, he would be consistently targeted by Brazilian press due to his supposedly "thuggish" style of playing. This period in Brazil's football history was called "Era Dunga", as according to fans and journalists, he symbolized the less-than-thrilling, slow, gritty, direct, and defensive style that the team had adopted in favour of a more exciting attacking style. Dunga played the anchor role in midfield extremely effectively, due to his ability to break down play and subsequently start attacks with his passing. Many other players in this position lunged into tackles and put themselves about, but Dunga rarely went to ground to make a tackle, instead using his anticipation and timing to win challenges and retrieve the ball. Despite his infamous reputation, Brazil's new coach Carlos Alberto Parreira kept Dunga as one of the starting XI throughout the 1994 World Cup Qualifiers and finals.

As a player, Dunga was a strong, hard-tackling, ball-winning defensive midfielder with good technique, tactical versatility and an ability to read the game well and organise his teammates; he was highly regarded for his anticipation and ability to time his challenges, only going in for tackles or sliding challenges when he deemed it necessary. He was also capable of contributing creatively and offensively to his teams; he usually positioned himself in front of the defence, which allowed him to break down the opposing team's plays, and start attacking plays with his passing once he won back possession. Dunga was also known for his powerful striking ability from distance and from set-pieces, as well as his vision and passing range, which also saw him function as a deep-lying playmaker; he often played long balls to forwards using the outside of his right foot. Considered to be one of the greatest holding midfielders of all time, Dunga was seen as an atypical Brazilian footballer, however, who was more similar to European midfielders in terms of his composed, efficient, tenacious and physical style of play. Although he lacked the refined quality of traditional, more skilful Brazilian midfielders in the mold of Zico, he stood out for his leadership, work-rate and his determination throughout his career. However, he also drew at criticism at time from Brazilian fans and pundits alike, due to his more physical and direct playing style, which also reflected the defensive style of play that the Brazilian national team had adopted throughout his international career, in favour of the more exciting attacking style that had often characterised their previous teams; as such, this period during the 1990s came to be known as the "Dunga Era" in the media.

Internationally, Dunga played 91 times for Brazil, scoring six goals. His international career began in 1983 at the FIFA U-20 World Cup. Dunga captained the young Brazilian squad, winning the tournament against Argentina in the final. A year later, he helped Brazil to win a silver medal at the 1984 Summer Olympics in Los Angeles, California. Dunga then began reaching call-ups to Brazil's senior squad, winning the 1989 Copa América by defeating Uruguay at the Maracanã Stadium in Rio de Janeiro.

At the club level, Dunga played for Internacional (1980–84, 1999–2000), Corinthians (1984–85), Santos (1985–87), Vasco da Gama (1987), Pisa (1987–88), Fiorentina (1988–92), Pescara (1992–93), VfB Stuttgart (1993–95), and Jubilo Iwata (1995–98).

Carlos Caetano Bledorn Verri (born October 31, 1963 in Ijuí, Rio Grande do Sul), commonly known as Dunga (Brazilian Portuguese:  [ˈdũɡɐ] ), is a Brazilian football manager and former professional footballer who played as a defensive midfielder. Under his captaincy, Brazil won the 1994 FIFA World Cup and he lifted the World Cup trophy. Along with Xavi, he is one of only two men to have played in a World Cup final, an Olympic final, a Confederations Cup final and a continental championship final. He was head coach of Brazil twice. In his first spell from 2006 to 2010, he led them to victory in the 2007 Copa América and the 2009 FIFA Confederations Cup, and to the quarter-finals of the 2010 FIFA World Cup, after which he was dismissed by the Brazilian Football Confederation. He was appointed in 2014 for a second time, but Brazil's early exit from the Copa América Centenario led to his dismissal in June 2016. He was also head coach of Internacional in 2013.