A rule change was instituted this season, so that in the event of a tie at the end of 90 minutes and extra time, there will be a penalty shoot-out, instead of a replay. The first two penalty shoot-outs of the competition occurred on the first round, played on 18 September 1965, with Hapoel Shefayim besting Hapoel Givat Haim 4–3, and with Hapoel Sha'ar HaNegev winning over Hapoel Ramat David with the same result.
The quarter-finals, semi-finals and the final itself were all played within one week, between 1 June 1966 and 8 June 1966. Hapoel Haifa and Shimshon Tel Aviv met at the final, the former winning 2–1 to claim its second cup.
Results
Fourth Round
The 32 second round winners were joined in this round by the teams from Liga Alef. Matches were played on 29 January 1966
^The original match, played on 19 April 1966 ended goalless, with Maccabi Jaffa winning 5–4 in the ensuing penalty shoot-out. Beitar Jerusalem appealed as they weren't allowed to substitute a player ahead of the shoot-out (as regulations allowed) and the match was replayed.
References
100 Years of Football 1906–2006, Elisha Shohat (Israel), 2006