The BCCI selected the top ten teams of the tournament for competing in the knock out level, once the zonal level league matches in all the zones were completed. The teams was comprised of the top two teams from each and every zone in the tournament and the teams played against each other in the knock out matches of the Ranji Trophy, 1986-87. The teams included the likes of Bengal, Bihar, Rajasthan, Railways, Delhi, Haryana, Gujarat, Bombay, Karnataka and Hyderabad. The teams took part in the Pre-Quarter-Finals, Quarter-Finals, Semi-Finals and Final match of the tournament with the one and only objective of becoming the champion in the Ranji Trophy, 1986-87. However, it was the Hyderabad team that eventually became successful to clinch the title with an impressive performance in the Final, against the Delhi team.

The first Pre-Quarter-Final match of the Ranji Trophy, 1986-87 was played between the teams of Bengal and Rajasthan and the teams played the match at Calcutta from 31 January-03 February, 1987. The match remained drawn during the stipulated duration and the match officials allowed the Bengal team to advance to the Quarter-Final stage of the tournament. The teams of Bihar and Railways clashed with each other in the second Pre-Quarter-Final match of the Ranji Trophy, 1986-87 and the match was held at Patna from 01-04 February, 1987. The match also remained drawn during the specified period of time and it saw the Bihar team getting the permission to compete in the Quarter-Finals of the tournament.

The clash between the teams of Hyderabad and Gujarat took place in the first Quarter-Final match of the Ranji Trophy, 1986-87 and the two teams played the match at Hyderabad form 14-17 February, 1987. The drawn match saw the Hyderabad team being allowed to reach the Semi-Final stage of the tournament. The Haryana and Bihar teams then played against each other in the second Quarter-Final match of the Ranji Trophy, 1986-87, which took place at Faridabad from 14-17 February, 1987. The match was also a drawn one and the match officials decided to allow the Bihar team for entering into the Semi-Finals of the tournament. The third Quarter-Final match of the Ranji Trophy, 1986-87 saw a battle between the teams of Karnataka and Bombay at Bangalore from 14-17 February, 1987. The Karnataka team earned the required permission to play into the Semi-Finals of the tournament from the drawn match. The last and fourth Quarter-Final match of the Ranji Trophy, 1986-87 involved the teams like Bengal and Delhi and the two teams played the match at Calcutta from 22-24 February, 1987. The match remained drawn, just like the other matches of the knock out level and it saw the Delhi team reaching the Semi-Final stage of the tournament.

The match between the teams of Delhi and Karnataka was the first Semi-Final match of the Ranji Trophy, 1986-87 and it took place at Delhi from 07-10 March, 1987. The Delhi team earned the required permission to compete in the Final match of the tournament, from this drawn match. The second Semi-Final match of the Ranji Trophy, 1986-87 was played between the teams of Hyderabad and Bihar at Secunderabad from 07-10 March, 1987. The match also remained drawn during the stipulated duration and the Hyderabad team entered into the Final from this match, to fight with the Delhi team for the championship title. Thus, the Hyderabad and Delhi teams locked their horns together in the Final match of the Ranji Trophy, 1986-87 and the match was organised at Delhi from 21-26 March, 1987. The match officials declared the Hyderabad team as the winner of the match as well as the championship, as the match remained drawn during the specified period of time.