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The 1988 Icelandic Cup was the 29th edition of the National Football Cup.
It took place between 31 May 1988 and 27 August 1988, with the final played at Laugardalsvöllur in Reykjavík. The cup was important, as winners qualified for the UEFA Cup Winners' Cup (if a club won both the league and the cup, the defeated finalists would take their place in the Cup Winners' Cup).
The 10 clubs from the 1. Deild entered in the last 16, with clubs from lower tiers entering in the three preliminary rounds. Teams played one-legged matches. In case of a draw, a penalty shoot-out took place (there were no replays, unlike in previous years).
Valur won their fifth Icelandic Cup, beating Keflavík in the final, and so qualifying for Europe.
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