The top two teams from each of the five zones successfully enter into the knock out level of the Ranji Trophy, 1959-60 to compete with each other for the championship title. The teams like Rajasthan, Bihar, Mysore, Bengal, Services and Bombay were among the most notable teams of the knock out level. However, the title was eventually won by the champion of the previous edition, Bombay team.

The teams of Rajasthan and Services took part in one of the Quarter-Final matches of the tournament and the match was held at Delhi from 26-29 February, 1960. Though the match was drawn during the stipulated duration, the match officials declared the Services team as the winner of the match, as it was having a lead in the first innings. The first Semi-Final match of the Ranji Trophy, 1959-60 saw a clash between the teams of Mysore and Bihar at Jamshedpur from 26-29 February 1960. The Mysore team played wonderfully in the match and got a win of 177 runs to enter into the Final of the tournament.

There was a battle between the teams of Services and Bombay in the second Semi-Final of the Ranji Trophy, 1959-60 and the match was held at Delhi from 03-06 March, 1960. The match was drawn during its stipulated duration and the match officials declared the Bombay teams as the winner of the match and also allowed it to compete for the title in the Final of the tournament. The Bombay and Mysore teams clashed in the Final of the tournament at Bombay from 10-13 March 1960. The Bombay team dominated the Mysore team throughout the Final match and eventually won the match by a huge margin of an innings and 22 runs to complete its second consecutive title win in the Ranji Trophy.