It began on 19 November 1986 with the first preliminary round and concluded on 20 June 1987 with the final which was held at Tsirion Stadium.
AEL Limassol won their 5th Cypriot Cup trophy after beating Apollon 1–0 in the final.
In the preliminary rounds each tie was played as a single leg and was held at the home ground of one of the two teams, according to the draw results.
If both teams had scored the same number of home and away goals, then extra time was following after the end of the second leg match.
If there weren't scored any goals during extra time, the qualifying team was determined by penalty shoot-out.