In the final match, played at the neutral ground of Red Star Stadium in Belgrade, Velež, led by coach Miloš Milutinović, won the cup by beating Ivica Osim's Željezničar 3–2 with Vahid Halilhodžić scoring a brace and Dragan Okuka adding a decisive third goal in the 80th minute.
Bregalnica were eventually knocked out by cup winners Velež, while Orijent lost their quarter-final tie on penalties after holding the Montenegrin side Budućnost Titograd to a goalless draw.
The cup final was played on Sunday, 24 May, traditionally scheduled to coincide with Youth Day celebrated on 25 May, a national holiday in Yugoslavia which also doubled as the official commemoration of Josip Broz Tito's birthday.
Seven top-level clubs were knocked out at this stage: Borac Banja Luka, Hajduk Split, Rijeka, Sarajevo, Vardar, Vojvodina, and NK Zagreb.
This round was marked by cup holders Dinamo Zagreb's exit following their 2–1 defeat to Radnički Niš, and the two third level minnows Bregalnica and Orijent who both knocked out top flight opponents.