Eleven teams participated in the 1994–95 Cypriot Second Division.
The home teams for the third round matches were determined based on their league table position after the end of the second round.
The team with the most points at the end of the season crowned champions.
The first two teams were promoted to 1995–96 Cypriot First Division.
Teams promoted to 1994–95 Cypriot First Division Teams relegated from 1993–94 Cypriot First Division Note: EPA Larnaca was also relegated from the 1993–94 Cypriot First Division.