The World Group was the highest level of Davis Cup competition in 1988.

[1] West Germany won the title, defeating the defending champions Sweden in the final, 4–1.

The final was held at the Scandinavium in Gothenburg, Sweden, from 16 to 18 December.

[2] It was the West German team's first Davis Cup title (having previously come runner-up in 1970 and 1985), becoming the ninth nation to win the Davis Cup.

The first-round losers played in the Relegation Play-offs.