Berwick Rangers finished top and were promoted alongside Queen's Park as play-off winners.
East Stirlingshire finished bottom of the table for the fifth consecutive season.
Despite finishing bottom again, East Stirlingshire won their battle to retain full member status of the Scottish Football League, though were warned that they would lose their status if they finished bottom in the following season.
A second promotion place was available via a play-off tournament between the ninth-placed team of the 2005–06 Scottish Second Division, Alloa Athletic, and the sides ranked second, third and fourth in the 2005–06 Scottish Third Division, Berwick Rangers, Stenhousemuir and Arbroath respectively.
The play off was won by Alloa Athletic who defeated Berwick Rangers in the final.