Sixteen teams participated in the 1986–87 Cypriot First Division.
The team with the most points at the end of the season crowned champions.
The last two teams were relegated to the 1987–88 Cypriot Second Division.
No team was relegated from the previous season.
The first two teams of the 1985–86 Cypriot Second Division, Ethnikos Achna and Omonia Aradippou were promoted and added to the First Division.