The defending champions were Ross County who defeated Clyde 5–4 on penalties in the 2006 final.
Ross County were eliminated in the second round after a 2–0 home defeat to eventual champions St Johnstone.
The final was played on 25 November 2007, between Dunfermline Athletic and St Johnstone, at Dens Park in Dundee.
Dunfermline Athletic received a random bye into the second round.
Source: BBC Sport Partick Thistle received a random bye into the second round.