Steffi Graf defeated Chris Evert in the final, 6–1, 7–6(7–3) to win the women's singles tennis title at the 1988 Australian Open.

Hana Mandlíková was the defending champion, but was defeated by Graf in the quarterfinals.

It was also her sixth Australian Open final in as many appearances at the event.

Martina Navratilova's streak of eleven consecutive major final appearances ended (starting from the 1985 French Open) when she lost to Evert in the semifinals.

This was the first edition of the tournament to be held on hardcourts, having previously been played on grass.