NWS Spirit were the defending champions but were eliminated by the eventual winners Sydney United 58 in the seventh round.
The first draw was hosted in March 2023 at the headquarters of Football NSW and involved a total of 127 grassroots clubs (level 5) drawn for Rounds 2 and 3.
[1] The Round 4 draw was announced in late March 2023 and included clubs from the National Premier Leagues NSW.
[2] For the 2023 edition of the Waratah Cup, Sydney United 58, APIA Leichhardt and Mt Druitt Town Rangers from the National Premier Leagues NSW progressed to the semi-final.
Inter Lions, from the NSW League One, entered the Waratah Cup semi-final for the first time in the club's history after defeating Rockdale Ilinden in the seventh round.