The 1962–63 Yugoslav Second League season was the 17th season of the Second Federal League (Serbo-Croatian: Druga savezna liga), the second level association football competition of SFR Yugoslavia, since its establishment in 1946.
Borac Banja Luka were relegated from the 1961–62 Yugoslav First League after finishing in the 12th place of the league table and losing in the relegation play-offs against Sloboda.
The five clubs promoted to the second level were BSK Slavonski Brod, Famos Hrasnica, Istra, Olimpija Ljubljana and Rudar Kakanj.
Vardar were relegated from the 1961–62 Yugoslav First League after finishing in the 11th place of the league table and losing in the relegation play-offs against Radnički Niš.
The six clubs promoted to the second level were Bačka, Borac Čačak, Budućnost Peć, Jedinstvo Zemun, OFK Subotica and Železničar Niš.