The eleventh Inter-Cities Fairs Cup was played over the 1968–1969 season. The competition was won by Newcastle United over two legs in the final against Újpest FC. It was the second consecutive time that a Hungarian side finished runners-up in the competition, and the first time Newcastle United had competed in a European competition. Newcastle have not won a major trophy since.

First round

KB and Union Luxembourg withdrew when drawn to play in Warsaw Pact countries.

First leg

Second leg

Dundalk won 3–2 on aggregate. Juventus won 4–0 on aggregate. Fiorentina won 3–2 on aggregate. OFK Beograd won 7–4 on aggregate. Bologna won 6–2 on aggregate. ''Argeș Pitești 1–1 Leixões on aggregate. Argeș Pitești won on away goals rule.'' Hamburger SV won 7–3 on aggregate. Napoli won 3–2 on aggregate. '' Real Zaragoza 3–3 Botev Plovdiv on aggregate. Real Zaragoza won on away goals rule.'' Vitória Setúbal won 6–1 on aggregate. ''1–1 on aggregate. Lyon won on toss of coin.''

Second round

First leg

Second leg

Rangers won 9–1 on aggregate. Vitória Setúbal won 7–1 on aggregate. Eintracht Frankfurt won 1–0 on aggregate. ''Fiorentina 4–4 Hansa Rostock on aggregate. Fiorentina won on away goals rule.'' OFK Beograd won 2–1 on aggregate. Göztepe won 5–3 on aggregate. ''Napoli 2–2 Leeds United on aggregate. Leeds United won on a coin toss.''

Third round

First leg

Second leg

Vitória de Setúbal won 4–2 on aggregate.

Quarter-finals

First leg

Second leg

Newcastle United won 6–4 on aggregate.

Semi-finals

First leg

Second leg

Newcastle United won 2–0 on aggregate. Újpest FC won 8–1 on aggregate.

Final