After playing for a few clubs in Iran and following his performance in Asia, he moved to Germany in 1997 to play for 1. FC Köln. Azizi, along with his Iranian national teammates Ali Daei and Karim Bagheri.
Having played for three seasons in 1. FC Köln, he signed a contract with California-based club San Jose Earthquakes. In 2001, Khodadad Azizi was transferred to the UAE club, Al Nasr, before returning to Iran and joining Pas Tehran.
Azizi represented Iran at the 1996 Asian Cup, 1998 FIFA World Cup, and the 2000 Asian Cup. Khodadad Azizi was named Asian Player of the Year in 1996, as well as the Asian Cup Most Valuable Player in the 1996 Asian Cup.
In December 2006, Azizi was appointed the manager of Aboomoslem, a Mashhad based football club that he had started his career with in the early 1990s. He was replaced by Parviz Mazloumi in October 2007. He was head coach of Payam Khorasan and Esteghlal Ahvaz for a short time. In 2011, he was appointed as head coach of Aboomoslem for a second time but parted company with the club on 1 June 2012.