The 1981–82 winners Red Star failed to retain the trophy as they were knocked out in the second round by Rijeka.
Surprise of the tournament were the Rijeka-based minnows Orijent who managed to reach the quarter-finals, where they were knocked on penalties after holding the eventual runners-up Sarajevo to a 0–0 draw.
The cup final was played on 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.
The 1983 Yugoslav Cup Final was contested by Dinamo Zagreb and Sarajevo at the Red Star Stadium in Belgrade.
It also proved to be their last Yugoslav Cup win as they never repeated the feat until the competition was made defunct in 1991.