The competition began on 17 August 1987, and ended with the final on 24 April 1988.
The final was played between Luton Town and holders Arsenal.
The match, played at Wembley Stadium in front of 95,732 spectators, was won by Luton Town by 3–2.
Defending league champions Everton, still yet to win the League Cup, had their dreams of winning the trophy ended when they were well beaten over the two legs of the semi-final by holders Arsenal.
In the other semi-final, 1986 winners Oxford United were ousted by Luton Town.