The 1985–86 European Cup Winners' Cup was won by Dynamo Kyiv in the final against Atlético Madrid. It was their second title in the competition, and first since 1975. Reigning champions Everton, who initially qualified for the European Cup instead as the 1984–85 Football League champions, and 1985 FA Cup winners Manchester United missed out on European football due to the newly enacted five-year ban on English clubs participating in Europe, following the Heysel Stadium disaster on 29 May 1985. CSKA Sofia were barred from entering after the riots during the Bulgarian Cup final. Benfica were given a bye in the 1st round.

First round

First leg

Second leg

Dynamo Kyiv won 5–3 on aggregate.

Second round

First leg

Second leg

Dynamo Kyiv won 5–2 on aggregate.

Quarter-finals

First leg

Second leg

Dynamo Kyiv won 9–2 on aggregate. ''2–2 on aggregate. Dukla Prague won on away goals.''

Semi-finals

First leg

Second leg

Dynamo Kyiv won 4–1 on aggregate.

Final

Top scorers