West Bromwich Albion won the competition, beating Everton 1–0 after extra time in the final at Wembley, London.
Those appearing in the competition proper for the first time were Tow Law Town, Ryhope Colliery Welfare and Arnold.
To complete the round, non-league sides Enfield and Skelmersdale United were given byes to this stage as the champions and runners-up from the previous season's FA Amateur Cup.
Matches were due to be played on Saturday, 9 December 1967, but snow and ice forced the postponement of 12 ties and the abandonment of two more, at Tow Law and Brentford.
The final took place on Saturday, 18 May 1968 at Wembley and ended in a victory for West Bromwich Albion over Everton by 1–0 after extra time.