Played under a regionalised, knock-out format, the 2016–17 competition was the third to be held since the tournament was expanded to include clubs from outside the Welsh Premier League.
As well as the 12 Welsh Premier League clubs from the previous season, the top five qualifying clubs from the northern and southern feeder leagues would enter the tournament, along with a number of wildcard entrants.
Their opponents were Barry Town United of the southern section of the Welsh football league system's second tier.
The second semi-final was originally played on 15 November, only to be abandoned due to heavy fog with the score at 2–2.
The match was played on Saturday 21 January 2017 at Cyncoed Stadium, Cardiff and was the first time the Welsh capital city had hosted the final.