The 1940 Palestine Cup (Hebrew: הגביע הארץ-ישראלי, HaGavia HaEretz-Israeli) was the eleventh season of Israeli Football Association's nationwide football cup competition.
The defending holders, Hapoel Tel Aviv, fell to city rival Maccabi Tel Aviv at the semi-final.
Maccabi met the emerging team of Beitar Tel Aviv at the final and lost 1–3.
The 6 teams from the Tel Aviv division of the 1939 Palestine League were given a bye to the second round, along with Hapoel Haifa.
Hapoel Ramat Gan also received a bye during the draw.