The 1987–88 Yugoslav Second League season was the 42nd season of the Second Federal League (Serbo-Croatian: Druga savezna liga), the second level association football competition of SFR Yugoslavia, since its establishment in 1946.
The four clubs promoted to the second level were Borac Travnik, Kabel, Olimpija Ljubljana and Šparta Beli Manastir.
At the end of season, Olimpija Ljubljana was spared from relegation as representative of Slovenia.
A total of eighteen teams contested the league, including fourteen sides from the 1986–87 season and four sides promoted from the Inter-Republic Leagues played in the 1986–87 season.
The four clubs promoted to the second level were Liria, Mačva Šabac, Metalurg Skopje and OFK Titograd.