The top two teams from each of the five zones got a promotion to the knock out level of the Ranji Trophy 1977-78. The ten teams that played against each other in the knock out matches of the Ranji Trophy 1977-78 included the likes of Bengal, Gujarat, Bihar, Maharashtra, Rajasthan, Uttar Pradesh, Punjab, Hyderabad, Karnataka and Delhi. They took part in the Pre-Quarter-Finals, Quarter-Finals, Semi-Finals and Final match of the tournament. The only objective of all the teams while playing in the knock out level was to win the coveted championship title.

The first Pre-Quarter-Final match of the Ranji Trophy 1977-78 was played between the teams of Maharashtra and Rajasthan at Karad from 11-14 February, 1978. The Rajasthan team won the match with a narrow margin of 4 wickets and got into the Quarterfinal stage of the tournament. The teams of Uttar Pradesh and Punjab played against each other in the second Pre-Quarter-Final match of the Ranji Trophy 1977-78 and the match was held at Mohan Nagar from 11-13 February, 1978. Though the match remained drawn during the stipulated period of time, the match officials decided to allow the Uttar Pradesh to advance to the Quarter-Final stage of the tournament.

There was a clash between the teams of Hyderabad and Bengal in the first Quarter-Final match of the Ranji Trophy 1977-78 and the two teams played the match at Hyderabad from 17-20 February, 1978. The drawn match saw the Hyderabad team getting the permission to advance to the Semi-Final stage of the tournament. The second Quarter-Final match of the Ranji Trophy 1977-78 saw a battle between the teams of Karnataka and Bihar at Bangalore from 18-21 February, 1978. The Karnataka team played wonderfully in the match and clinched a huge victory of an innings and 69 runs for getting into the Semi-Finals of the tournament. In the third Quarter-Final match of the Ranji Trophy 1977-78, the teams of Uttar Pradesh and Gujarat clashed with each other at Mohan Nagar from 24-27 February, 1978. Playing well in the match, the Uttar Pradesh team beat the Gujarat team by 60 runs also got the permission to compete in the Semi-Finals of the tournament. The last and fourth Quarter-Final match of the Ranji Trophy 1977-78 involved the teams like Delhi and Rajasthan and the match took place at Delhi from 26 Febaury-01 March, 1978. The Delhi team won the match comprehensively by an innings and 103 runs and became the last team to get into the Semi-Final stage of the tournament.

The Semi-Final stage of the tournament started with the clash between the teams of Delhi and Karnataka, as the teams played against each other in the first Semi-Final match of the Ranji Trophy 1977-78. The match was played at Delhi from 17-20 March, 1978 and the drawn match saw the Karnataka team winning on the basis of its lead in the first innings and also securing a birth in the Final of the tournament. The second Semi-Final match of the Ranji Trophy 1977-78 saw a clash between the teams of Uttar Pradesh and Hyderabad at Mohan Nagar from 17-20 March, 1978. The Uttar Pradesh team played wonderfully in the match and clinched a victory of 7 wickets for setting up a Final clash with the Karnataka team. Thus, the Karnataka and Uttar Pradesh teams locked their horns together in the Final of the Ranji Trophy 1977-78 at Mohan Nagar from 04-06 April, 1978. The Karnataka team outplayed the Uttar Pradesh team in the Final match and clinched a win of an innings and 193 runs for becoming the champion of the tournament, after a long time.