The 1968–69 Israel State Cup (Hebrew: גביע המדינה, Gvia HaMedina) was the 30th season of Israel's nationwide football cup competition and the 15th after the Israeli Declaration of Independence.
Hakoah Maccabi Ramat Gan and Maccabi Sha'arayim met in the final, both teams appearing in their first final (although Hakoah Tel Aviv, one of the clubs which were merged to form Hakoah Maccabi Ramat Gan, did appear in the 1935 final).
Hakoah emerged the winner by a single goal to claim its first cup.
As in previous seasons, The draw was set so that Liga Alef clubs wouldn't be drawn against each other.
The IFA arranged the draw so each Liga Leumit clubs wouldn't be drawn to play each other.