A total of eighteen teams contested the league, including twelve sides from the 1986-87 season, two clubs relegated from the 1985-86 Yugoslav First League and four sides promoted from the Inter-Republic Leagues played in the 1986-87 season.
Dinamo Vinkovci and Spartak Subotica were relegated from the 1986-87 Yugoslav First League after finishing in the bottom two places of the league table.